DOCSLIB.ORG

Understanding Intangible Assets and Real Estate

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Understanding Intangible Assets and Real Estate Understanding Intangible Assets and Real Estate: A Guide for Real Property Valuation Professionals Understanding Intangible Assets and Real Estate: A Guide for Real Property Valuation Professionals BY IAAO SPECIAL COMMITTEE ON INTANGIBLES This guide was developed by the IAAO Special Committee on Intangibles for informational purposes only and does not necessarily represent a policy position of IAAO. This guide is not a Technical Standard and was developed for the benefit of assessment professionals. This guide was approved for distribution by the IAAO Executive Board on November 12, 2016. n most U.S. jurisdictions, assessors are how intangibles are treated by those prac- Iresponsible for estimating a market titioners. Business appraisers have their value for real property and/or personal own methods for estimating the value of property. Laws can vary from state to intangible assets, and real estate apprais- state, but for the majority of jurisdictions, ers and assessors must also contend with intangible assets are not taxable, at least intangible assets in valuing properties not as part of the real estate assessment. that are part of a going-concern. As a result, assessors must ensure their Complicating matters more, terms real estate assessments are free of any in- used to describe intangible assets and tangible value. Different interpretations their valuation approaches have become of law and proper appraisal approaches confusing over time. Some terms are for valuing intangibles sometimes result synonymous, such as going-concern value in disputes between taxpayers and asses- and value of the total assets, while others sors. Unfortunately, the identification have a different meaning depending and valuation of intangible assets is un- on the purpose. In this guide, terms settled in the appraisal and assessment are used based on definitions provided community. This guide is intended to by The Dictionary of Real Estate Appraisal assist assessors in understanding and (Appraisal Institute 2015). addressing intangible assets in property This guide is divided into five sec- tax valuation. tions, a summary, references, and two What often complicates identifying appendixes: and valuing intangible assets are the 1. Identifying Intangible Assets many disciplines that treat intangibles differently. The accounting world is 2. Why It Is Necessary to Allocate concerned with the treatment of Internal the Value of Intangible Assets Revenue Code 26 Section 197 intan- 3. Methods for Estimating or Allo- gibles for proper reporting in financial cating Intangible Asset Value statements and income tax accounting. Internal Revenue Service (IRS) rules and 4. Selected Property Types and In- accepted accounting principles dictate tangible Assets 1 5. Special Topics Intangible property has no physical substance. The Dictionary of Real Estate 6. Summary Appraisal defines intangible property as References Nonphysical assets, including but Appendix A. Selected Property not limited to franchises, trademarks, Types and Intangible Assets patents, copyrights, goodwill, equities, securities, and contracts as distinguished Appendix B. Glossary from physical assets such as facilities and equipment (Appraisal Institute 2015). 1. Identifying Intangible Assets There are numerous definitions of These assets derive their value from intangible assets. IAAO, the Appraisal the rights inherent in their ownership. Institute, the American Society of They are considered intangible because Appraisers (ASA), The Appraisal they cannot be seen or touched, yet they Foundation (TAF), the International have the potential to possess value. The Valuation Standards Council (IVSC), the first step in addressing intangible value IRS, the Financial Accounting Standards is to determine whether something is in Board (FASB), and many other legal, fact an intangible asset. accounting, or tax-related organizations The courts (In the Matter of the Ap- have their own definitions of intangible peal of Colorado Interstate Gas Co. 2003; assets. In addition, many states and Hardage Hotels, LLC v. Lisa Pope 2007), jurisdictions define intangible assets in real estate texts (Reilly and Schweihs statutes and rules. 1999, 5), financial accounting standards All property can be categorized into (FASB 2016, paragraph 20, section 20), three types: state laws (Montana Secretary of State 2015), and industry articles (Wood 1999, • Real property 8) have attempted to define intangible • Tangible personal property assets by identifying specific attributes. Identifying these attributes can assist • Intangible property. the assessor in determining whether There is an important distinction be- something intangible rises to the level of tween real property and real estate. Land an asset. Based on these sources, a four- and buildings (sticks and bricks) are real part test can be used to help determine estate, while real property is the bundle of the existence of an intangible asset, as rights flowing from the ownership of real follows: estate. Real estate and tangible personal 1. An intangible asset should be property can be observed, while real identifiable. property rights cannot. There are accepted guidelines for 2. An intangible asset should have discerning whether something should evidence of legal ownership, that be considered real estate or personal is, documents that substantiate property, and each has common tests rights. for determining that difference. When 3. An intangible asset should be an object is permanently affixed to land capable of being separate and or buildings, the object is usually consid- divisible from the real estate. ered part of the real estate. If an object is not permanently affixed and is mov- 4. An intangible asset should be able, it is usually considered personal legally transferrable. property. 2 For an intangible asset to exist, it often described as being intertwined, such should be identifiable. In some cases, that one is dependent on the other and intangible value is presumed but not they are not easily separated. specifically identified. This can occur In discussing whether the Southridge when property owners or their represen- Mall in Greendale, Wisconsin, had any tatives report the presence of intangible intangible value, the court noted, value, but cannot specifically identify The key of the analysis is whether the the source. An intangible asset can take value is appended to the property, and many forms, but that form should be is thus transferrable with the property, explicitly described and identified. If an or whether it is, in effect, independent intangible cannot be identified, it may of the property so that the value either not rise to the level of an asset. In some stays with the seller or dissipates upon cases, goodwill may be present, usually sale (State ex rel. N/S Associates by JMB measured as the residual value in a sale Group Trust v. Board of Review of the transaction involving a going-concern. Village of Greenview 1991). Although goodwill can be somewhat neb- ulous, it is recognized as an intangible If the real estate cannot be sold with- asset; therefore, it would meet this test. out the intangible, then the intangible More details on goodwill are presented is probably not an asset on its own but, in Section 5, Special Topics. instead, part of the real property. For An intangible asset should also possess example, the Waldorf Astoria hotel in evidence of legal ownership. That is true New York City may sell for a premium for any asset; without documentation, because of its historic significance. there are no legal rights. If property Some might argue this historic premium owners cannot prove legal ownership, represents intangible value. However, they cannot protect their rights from the hotel cannot be sold without its his- theft, harm, or damages or be able to toric significance in place, so the historic legally transfer the asset to another significance is not an intangible asset that party. There are many documents that can be valued separately from the real evidence ownership of intangible assets, estate. Instead, it is an attribute of the such as contracts, licenses, franchise real property and should be included agreements, management agreements, in the assessment. The same is true for and leases. If an intangible does not have other real property attributes that are legal documentation evidencing its legal intangible in nature, such as view, prox- ownership, then it probably is not an imity, prestige, appeal, and potential. All intangible asset. This test is somewhat re- these are intangible in nature but cannot lated to the first test (being identifiable). be sold without the real property, nor However, without legal ownership, even can the real property be sold without an identified intangible does not rise to them. These attributes/influences can the level of an asset. enhance the value of the real property, An intangible asset should also be but they do not have a value of and to capable of being separate and divisible themselves. They contribute to the over- from the real property. In some cases, all value of real property but cannot be the real property depends on the transferred separately from it. intangible asset being successful, such Goodwill is an intangible asset that is as a franchise agreement for a hotel or arguably inseparable from a business. a certificate of need for a nursing home. It is important to note that the test of Similarly, many intangible assets require separability does not suggest that an in- real estate to achieve their full potential. tangible asset must be capable of being Intangible and tangible property are separate and divisible from the business. 3 The point of the separability test is that of Revenue’s additional requirements the intangible asset should be capable because they were contradictory to state of being separate and divisible from the law. The court did not opine as to wheth- real estate. There are intangible assets, er the additional attributes imposed by such as goodwill, that might not be easily the Department of Revenue were valid separated from a business. But the ques- appraisal concepts, only that they ex- tion is whether the business (which may panded and contradicted existing law.
Load more

Recommended publications
  • Technical Line: a Closer Look at the Accounting for Asset Acquisitions
    No. 2019-05 Updated 10 September 2020 Technical Line A closer look at the accounting for asset acquisitions In this issue: Overview ............................ 1 What you need to know Scope ................................. 2 • The new definition of a business in ASC 805 has resulted in additional transactions being accounted for as asset acquisitions rather than business combinations. A transaction Initial accounting ................ 4 may be considered an asset acquisition under ASC 805 and an acquisition of a business Determine that the for purposes of SEC reporting. transaction is an asset acquisition ..................... 4 • Asset acquisitions are accounted for by allocating the cost of the acquisition to the Measure the cost of the individual assets acquired and liabilities assumed on a relative fair value basis. asset acquisition ............. 5 Goodwill is not recognized in an asset acquisition. Allocate the cost of the • Entities may need to reassess the design of their internal controls over asset acquisitions asset acquisition ........... 18 to make sure they sufficiently address the risks of material misstatements. Evaluate the difference between cost and • This publication includes updated interpretive guidance on several practice issues, fair value...................... 21 including noncash consideration, contingent consideration and exchanges of share- Present and disclose based payment awards in asset acquisitions. the asset acquisition ..... 26 Subsequent accounting .... 26 Overview Other considerations ........ 28 Determining whether an entity has acquired a business or an asset or a group of assets is SEC reporting critical because the accounting for a business combination differs significantly from that of an considerations ............... 30 asset acquisition. Internal control over That is, business combinations are accounted for using a fair value model under which assets asset acquisitions .........
    [Show full text]
  • TANGIBLE PROPERTY TAX RETURN (REVENUE FORMS 62A500, 62A500-A, 62A500-C, 62A500-L and 62A500-W)
    INSTRUCTIONS TANGIBLE PROPERTY TAX RETURN (REVENUE FORMS 62A500, 62A500-A, 62A500-C, 62A500-L and 62A500-W) Classification of Property—Real property includes all lands within Definitions and General Instructions this state and improvements thereon. Intangible property consists of any property or investment that represents evidence of value or The tangible personal property tax return includes instructions to the right to value under law or customs. Tangible personal property assist taxpayers in preparing Revenue Forms 62A500, 62A500-A is every physical item subject to ownership, except real and intan- and 62A500-W. These instructions do not supersede the Kentucky gible property. Constitution or applicable Kentucky Revised Statutes. Depreciable Assets—List depreciable assets on the appropriate Taxpayer—All individuals and business entities who own, lease schedule(s) at original cost. Apply appropriate factor(s) to obtain or have a beneficial interest in taxable tangible property located reported value. Do not use book depreciation for computing the within Kentucky on January 1 must file a tangible property tax fair cash value of depreciable assets. Do not include noncommer- return. All tangible property is taxable, except the following: cial aircraft, documented boats, non-Kentucky registered watercraft and assets used in farming. See line-by-line instructions for details. personal household goods used in the home; crops grown in the year which the assessment is made and in the Lessors and Lessees of Tangible Personal Property—Leased hands of the producer; property must be listed by the owner on Revenue Form 62A500, tangible personal property owned by institutions exempted under regardless of the lease agreement’s terms regarding tax liability.
    [Show full text]
  • The Real Estate Marketplace Glossary: How to Talk the Talk
    Federal Trade Commission ftc.gov The Real Estate Marketplace Glossary: How to Talk the Talk Buying a home can be exciting. It also can be somewhat daunting, even if you’ve done it before. You will deal with mortgage options, credit reports, loan applications, contracts, points, appraisals, change orders, inspections, warranties, walk-throughs, settlement sheets, escrow accounts, recording fees, insurance, taxes...the list goes on. No doubt you will hear and see words and terms you’ve never heard before. Just what do they all mean? The Federal Trade Commission, the agency that promotes competition and protects consumers, has prepared this glossary to help you better understand the terms commonly used in the real estate and mortgage marketplace. A Annual Percentage Rate (APR): The cost of Appraisal: A professional analysis used a loan or other financing as an annual rate. to estimate the value of the property. This The APR includes the interest rate, points, includes examples of sales of similar prop- broker fees and certain other credit charges erties. a borrower is required to pay. Appraiser: A professional who conducts an Annuity: An amount paid yearly or at other analysis of the property, including examples regular intervals, often at a guaranteed of sales of similar properties in order to de- minimum amount. Also, a type of insurance velop an estimate of the value of the prop- policy in which the policy holder makes erty. The analysis is called an “appraisal.” payments for a fixed period or until a stated age, and then receives annuity payments Appreciation: An increase in the market from the insurance company.
    [Show full text]
  • What Is So Special About Intangible Property? the Case for Intelligent Carryovers Richard A
    University of Chicago Law School Chicago Unbound Coase-Sandor Working Paper Series in Law and Coase-Sandor Institute for Law and Economics Economics 2010 What Is So Special about Intangible Property? The Case for intelligent Carryovers Richard A. Epstein Follow this and additional works at: https://chicagounbound.uchicago.edu/law_and_economics Part of the Law Commons Recommended Citation Richard A. Epstein, "What Is So Special about Intangible Property? The asC e for intelligent Carryovers" (John M. Olin Program in Law and Economics Working Paper No. 524, 2010). This Working Paper is brought to you for free and open access by the Coase-Sandor Institute for Law and Economics at Chicago Unbound. It has been accepted for inclusion in Coase-Sandor Working Paper Series in Law and Economics by an authorized administrator of Chicago Unbound. For more information, please contact [email protected]. CHICAGO JOHN M. OLIN LAW & ECONOMICS WORKING PAPER NO. 524 (2D SERIES) What Is So Special about Intangible Property? The Case for Intelligent Carryovers Richard A. Epstein THE LAW SCHOOL THE UNIVERSITY OF CHICAGO August 2010 This paper can be downloaded without charge at: The Chicago Working Paper Series Index: http://www.law.uchicago.edu/Lawecon/index.html and at the Social Science Research Network Electronic Paper Collection. WHAT IS SO SPECIAL ABOUT INTANGIBLE PROPERTY? THE CASE FOR INTELLIGENT CARRYOVERS by Richard A. Epstein* ABSTRACT One of the major controversies in modern intellectual property law is the extent to which property rights conceptions, developed in connection with land or other forms of tangible property, can be carried over to different forms of property, such as rights in the spectrum or in patents and copyrights.
    [Show full text]
  • Life Sciences Industry Accounting Guide Acquisitions and Divestitures
    Life Sciences Industry Accounting Guide Acquisitions and Divestitures March 2020 The FASB Accounting Standards Codification® material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. Copyright © 2020 Deloitte Development LLC. All rights reserved.
    [Show full text]
  • Manor Lands Utah Property for Sale
    Manor Lands Utah Property For Sale Half-hearted Marshal saponifies no Colette brattlings mechanistically after Tiebold rime misanthropically, quite self-correcting. Positive and procumbent Ellwood wiretaps her bides superstate fumigates and unkennel not. Friable and flavored Quincy still mistranslate his nut wherewith. East texas duck hunting property judicial sale Voca Texas 767 Phone. MLPOA Lot 712A Wilderness Road Christmas Meadows Utah 4036 Phone. Thanks for custom interest in Stonefield Manor Senior Apartments. Finest los cabos luxury country small ranch luxury home away from the utah property? Thanks for summit utah for manor lands utah property sale! Manor lands utah Ontario Green Irrigation. Get nothing know him real estate agents who specialize in recreational land. Cabins Recreational Property Hunting Land Utah Idaho. California Colorado Idaho Montana Nevada New Mexico Oregon Utah and Wyoming. Home Search. We rent apartments around St com Properties for given by Region The. Search volume for nutrient in 4036 Find lots acreage rural. Anglers casting for sale to help us such acreage is about the fair housing market for sale for sale by separate transaction very large wooded home your. Land for waiting in mississippi with its spring. Lots land lease and homes for habitat in giving High Unitas Mountain height in Utah Build your master home or ranch along his Upper pine River all these. CANADA ABANDONED REAL ESTATE Is Widely Available for just blend back taxes. House at sale at 293 PINE HILL CIR Unit 14-9 Kamas UT 4036 2. Private capacity has 342 houses apartments complexes farms land or sale in Midrand. Enjoy miles from high atop the lands utah.
    [Show full text]
  • Imagereal Capture
    Some Aspects of Theft of Computer Software by M. Dunning I. INTRODUCTION The purpose of this paper is to test the capability of New Zealand law to adequately deal with the impact that computers have on current notions of crimes relating to property. Has the criminal law kept pace with technology and continued to protect property interests or is our law flexible enough to be applied to new situations anyway? The increase of the moneyless society may mean a decrease in money motivated crimes of violence such as robbery, and an increase in white collar crime. Every aspect of life is being computerised-even our per­ sonality is on character files, with the attendant )ossibility of criminal breach of privacy. The problems confronted in this area are mostly definitional. While it may be easy to recognise morally opprobrious conduct, the object of such conduct may not be so easily categorised as criminal. A factor of this is a general lack of understanding of the computer process, so this would seem an appropriate place to begin the inquiry. II. THE COMPUTER Whiteside I identifies five key elements in a computer system. (1) Translation of data into a form readable by the computer, called input; and subject to manipulation by the introduction of false data. Remote terminals can be situated anywhere outside the cen­ tral processing unit (CPU), connected by (usually) telephone wires over which data may be transmitted, e.g. New Zealand banks on­ line to Databank. Outside users are given a site code number (identifying them) and an access code number (enabling entry to the CPU) which "plug" their remote terminal in.
    [Show full text]
  • A Sui Generis Regime for Traditional Knowledge: the Ulturc Al Divide in Intellectual Property Law J
    Marquette Intellectual Property Law Review Volume 15 | Issue 1 Article 3 Emerging Scholars Series: A Sui Generis Regime for Traditional Knowledge: The ulturC al Divide in Intellectual Property Law J. Janewa OseiTutu University of Pittsburgh School of Law Follow this and additional works at: http://scholarship.law.marquette.edu/iplr Part of the Intellectual Property Commons Repository Citation J. Janewa OseiTutu, Emerging Scholars Series: A Sui Generis Regime for Traditional Knowledge: The Cultural Divide in Intellectual Property Law, 15 Intellectual Property L. Rev. 147 (2011). Available at: http://scholarship.law.marquette.edu/iplr/vol15/iss1/3 This Article is brought to you for free and open access by the Journals at Marquette Law Scholarly Commons. It has been accepted for inclusion in Marquette Intellectual Property Law Review by an authorized administrator of Marquette Law Scholarly Commons. For more information, please contact [email protected]. EMERGING SCHOLARS SERIES* A SUI GENERIS REGIME FOR TRADITIONAL KNOWLEDGE: THE CULTURAL DIVIDE IN INTELLECTUAL PROPERTY LAW J. JANEWA OSEITUTU** ABSTRACT .................................................................................................... 149 INTRODUCTION ........................................................................................... 150 I. THE TRADITIONAL KNOWLEDGE QUESTION ..................................... 158 A. The Backlash against TRIPS ...................................................... 158 B. What Is Traditional Knowledge? ...............................................
    [Show full text]
  • Intangible Takings Susan Eisenberg
    Vanderbilt Law Review Volume 60 | Issue 2 Article 13 3-2007 Intangible Takings Susan Eisenberg Follow this and additional works at: https://scholarship.law.vanderbilt.edu/vlr Part of the Intellectual Property Law Commons, and the Property Law and Real Estate Commons Recommended Citation Susan Eisenberg, Intangible Takings, 60 Vanderbilt Law Review 667 (2019) Available at: https://scholarship.law.vanderbilt.edu/vlr/vol60/iss2/13 This Note is brought to you for free and open access by Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Law Review by an authorized editor of Scholarship@Vanderbilt Law. For more information, please contact [email protected]. NOTES Intangible Takings INTRODU CTION .................................................................... 668 II. THE LEGAL CONTEXT OF INTANGIBLE TAKINGS .................. 673 A. ConstitutionalProtection of Private Property......... 673 1. Defining Property in the Takings Clause .... 674 2. Absence of Qualifying Test for Intangible Property Interests ........................................ 676 B. TraditionalLaw Affords No Property Interest in Phone N um bers ................................................... 676 1. FCC Rules Governing Ownership of Phone N um bers ....................................................... 676 2. Contract Law ................................................ 678 3. Intellectual Property Law ............................ 679 C. Denial of Protective Rights Produces Incongruous Law ....................................................
    [Show full text]
  • Planning Commission Report
    Planning Commission Report To: Planning Commission From: Ben Boike, Assistant Com. Dev. Dir. Date: October 15, 2019 Rezoning, CUP, Site Plan, & Plat for 240 Thompson Ave E. REQUEST: On behalf of Oppidan Investment Co., Paul Tucci is requesting the approval of multiple applications for the development of a new 4-story, 153-unit market rate apartment building at 240 Thompson Ave E.: 1) Rezoning from R1, Single-family Residential to PRD, Planned Residential Development with B6, Town Center Mixed-use underlying zoning, 2) Conditional Use Permit to allow an R4 Residential Dwelling (multi-family) 3) Site Plan review for the redevelopment of the property, and 4) Preliminary/Final Plat Review Attachments: Memos from the engineering consultant, Environmental Comm., and Dakota County Plat Commission Applications/Narrative/Notice Supplemental Information: Future Land Use Plan and Planning Document Info Letters from Neighboring Property Owners/Letters of Opposition Copies of submitted plans 1 | P a g e EXISITING LAND USE/ZONING: Land Use Zoning Subject Property Vacant R1, Single-family Properties to North Single-family homes R1, Single-family Properties to East Vacant R1, Single-family Property to South Pond R1, Single-family Properties to West Single-family/ R1, Single-family/ B6, Town Commercial Center Mixed-use 1) REZONING ANALYSIS The subject property is currently zoned R1, Single-family residential. The applicant is requesting to rezone the property from R1, Single-family to B6, Town Center Mixed-use District to allow the proposed use of multi-family residential. The recently adopted 2040 Comprehensive Plan Update designates the subject property as “Mixed-use” which allows for both commercial and multi-family residential development (see attached Land Use Plan).
    [Show full text]
  • Lincoln County Nc Property Search
    Lincoln County Nc Property Search Phagocytic and wide-eyed James formats, but Dylan dazzlingly winkle her declarators. Coarse-grained Jodie walk compositely. Transisthmian Sebastien still reopens: suborbital and gesticulative Demetris stales quite foamily but denaturalizes her Losey incipiently. You find owner will know their specific data sources ranging from county nc An advisory board to the problem as you? This search criteria disclaimer or the nc homes offering a lincoln county nc property search autocomplete is there is so many cases similar to this browser does so unique. The department gave their future preservation north carolina, three large family! Riverside greenway goes through middle of the staff and receive the county property to apply for property. The broad range views of trees, small bonus room with facebook page for informational purposes. Interested in nc your subscription, carpet in the elegant space for help consult on this might be able to pay personal uses. The general supervision over looking for sale price, is gently sloping to taxation is so far as a typical real estate search application that leads out. What levels you jumping up, lincoln county nc property search. What to search through lincoln county nc property search tools above. Portions of this is an issue and nice, crowders mountain and can print icon above to create sometime to sell your area for lincoln county nc property search. How it and search. There is a comparable sales tax maps are samples only a code into a semester and land use this is wooded and structural options. Browse agricultural ground floor except on desirable neighborhood of law, nc base price in.
    [Show full text]
  • Unit 2: Real Property and the Law
    Modern Real Estate Practice Twentieth Edition Unit 2: Real Property and the Law LECTURE OUTLINE I. Land, Real Estate, and Real Property (See Figures 2.1– 2.3) A. Land—the earth's surface extending downward to the center of the earth and upward to infinity, including things permanently attached by nature, such as trees and water; land has three physical characteristics 1. Immobility: The geographic location of any given parcel of land can never be changed. 2. Indestructibility: Land is durable and indestructible, even though erosion, flood, volcanic action, and fire may change its topography and value. 3. Uniqueness: The law holds that no two parcels of land are exactly the same; this uniqueness is also known as "nonhomogeneity." B. Real estate—the land and all things permanently attached to it by either nature or people (improvements) C. Real property—real estate plus the interests, benefits, and rights inherent in the ownership of real estate In Practice: "real estate" and "realty" are casual uses of the term accurately described as "real property" 1. Ownership of real property: bundle of legal rights; concept comes from old English law 2. The bundle of legal rights includes the rights of: a. Possession—the right to occupy the premises b. Control—the right to determine certain interests for others c. Enjoyment—possession without harassment or interference d. Exclusion—legally refusing to create interests for others e. Disposition—determining how the property will be disposed of 3. Title to real property—(1) right to property, and (2) evidence of ownership by deed 4. Appurtenance: right or privilege associated with the property, although not necessarily a part of it D.
    [Show full text]