Real Property Characteristics

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Air Rights:

Back 1

The right to use the space above the land. Air rights are required for the erection of buildings.

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Appurtenance:

Back 2

A permanent addition to the land. Something adapted to the use of the real property and which passes as an incident to said land, such as a house, barn, garage or right of way.

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Base Line:

Back 3

A major line running east-west across the United States on the Rectangular Survey or Government Rectangular Survey method of land description.

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Benchmark:

Back 4

A marker placed by a government surveyor showing the location and elevation above sea level of that marker. Benchmarks are used by surveyors as a reference point.

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Block:

Back 5

A legal description referring to a group of lots within a subdivision. Used with the plat method of land description.

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Chattel Real:

Back 6

A personal interest in real property, such as a lease, mortgage or trust deed. This is not a real property interest or form of ownership. This is not the same thing as Chattel.

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Common Elements:

Back 7

Areas used by all of the owners such as the walkways, entrances and playgrounds. Also called Common Areas.

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Common Interest Development:

Back 8

Clustered buildings with shared land ownership. Condominiums, where owners have individual ownership of each condo and shared ownership of common areas are an example of a Common Interest Development.

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Condominium:

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A common interest community in which portions of the real estate are designated for separate ownership and the remainder of which is distributed for common ownership solely among separate owners. A common interest community is not a condominium unless the undivided interests in the common elements are vested in the unit owners. Condominium ownership DOES NOT include the land.

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Contingent Remainder Interest:

Back 10

An interest in a property that is only valid if certain specified conditions are met. For example, a property owner allows a tenant to occupy his property for life, but also promises to give the property to a third party if the tenant dies. The third party has a contingent remainder interest in the property.

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Constructive Notice:

Back 11

The recording of documents is considered notice to all of the world (even though all of the world will never read them!) and it is presumed that all persons have knowledge of the contents. Possession of a property is considered constructive notice that the person in possession has an interest in the property.

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Cooperative:

Back 12

An apartment building in which tenancy is obtained by purchasing shares of stock of a corporation. Owners of shares are entitled to occupy a specific apartment in the building but receive no deed. Shareholders must pay any assesments or association fees.

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Corporation:

Back 13

A separate legal entity owned by shareholders.

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Curtesy:

Back 14

A husband's right to the life estate of a wife's property upon her death. Abolished in most states, including Colorado.

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Datum:

Back 15

A starting point from which vertical and horizontal measurements can be made. A benchmark can be used as a datum.

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Devise:

Back 16

A gift of real property by the last will and testament of the donor. When personal property is given, it is called a bequest. When money is left to a beneficiary, it is called a legacy.

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Dower:

Back 17

The part or interest of a deceased man's real estate alloted by law to his widow for her lifetime. Also called dowery. Abolished in Colorado.

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Equalization Factor:

Back 18

A factor (number) by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valorem tax would be based on this adjusted value.

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Equitable Title:

Back 19

The interest in a real property held prior to recieving title. For example, the buyer’s interest during a sales contract or a trustor's interest under a deed of trust.

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Escheat:

Back 20

The reversion of property to the state in the event the owner dies without leaving a will and has no blood heirs or relatives to whom the property may pass by lawful descent. Escheat also applies to abandoned property.

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Estate for Years:

Back 21

An interest in land for a fixed period of time, whether for a day or 99 years; often called a tenancy for years.

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Estate in Severalty:

Back 22

Ownership of property by a single individual. Also called Sole Ownership.

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Fee Simple Absolute:

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The most comprehensive ownership of real property known to the law.

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Fee Simple Defeasible:

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A form of ownership which lasts as long as a condition is met.

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Fixtures (Built-In):

Back 25

Personal property that becomes an improvement (part of the real property) by being attached or adapted to fit the specific space. Examples include kitchen cabinets, dishwashers, window coverings and ceiling fans.

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Fractional Section:

Back 26

A parcel of land less than 160 acres, usually found at the edge of a rectangular survey.

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Franchise:

Back 27

An independent business which uses a common marketing plan and a designated trade name. For example, a locally owned chain restaurant.

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Freehold Estates:

Back 28

An interest in the real estate that has no predetermined time span, such as a fee simple or life estate.

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General Partnership:

Back 29

A company in which each partner is considered to be equally liable for debts against the company.

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Grantee:

Back 30

The person to whom real estate is conveyed; the buyer.

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Grantor:

Back 31

A person who conveys real estate, the seller.

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Holographic Will:

Back 32

A will written, dated, and signed in the testator’s writing. An unwitnessed testimentary docuemnt.

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Improvements:

Back 33

All objects attached to the land in a permanent way including buildings, sheds, garages, gazebos, landscaping, wells, septic systems, decks, patios, built-in alarm or sprinkler systems and fixtures.

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Intestate:

Back 34

A condition where a person dies without leaving a will.

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Joint Tenancy:

Back 35

A type of co-ownership of real property held by two or more persons with all co-owners being equally entitled to the use, enjoyment, control and possession of the land and with the right of survivorship. Most often used for co-ownership with spouses (married or common law). Each Joint Tenant ownes an equal fractional share of the total property.

Front 36

Leasehold (Leasehold Estate):

Back 36

An estate or right in real property held under a lease. Each renter has rights in the real estate that they rent. Leasehold rights include the right to use the property but do not include the right to sell it.

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Life Estate:

Back 37

An estate or interest (reversionary interest) in real property that is held for the duration of the life of some certain person. Also called a life tenant.

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Limited Partnership:

Back 38

A company that has both general partners who share liability and limited partners who are not liable for debts and make no administrative decisions. Limited partners risk only their investment. Taxes are passed through to the shareholders, who are taxed on the profits of the partnership at their own personal rate.

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Littoral Rights:

Back 39

Rights to standing water. A landowner`s claim to use water in large navigable lakes and oceans adjacent to his or her property. The ownership rights to land bordering these bodies of water up to the high-water mark.

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Lot

Back 40

An individual piece of property within a subdivision.

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Metes and Bounds (Course and Distance or the Bearing System):

Back 41

A method for describing land that details all the boundary lines of land together with their terminal points and angles. Metes are measures of length and bounds are boundaries. This description starts with a well-marked point of beginning and follows the boundaries of the land, in a clockwise manner, until it returns once more to the point of beginning.

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Quiet Enjoyment:

Back 42

Right of an owner or tenant to the use of a property without interference.

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Partition

Back 43

Court proceedings by which co-owners seek to sever their joint ownership.

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Personal Property:

Back 44

Generally, all things which are not real property; things of a temporary or movable nature.

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Plat

Back 45

A parcel or plot of land; also a method of land description referring to a recorded map (plat) of a subdivision or town which lays out boundaries, streets, easements etc. Plats are divided into subdivison, block and lot.

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Point of Beginning:

Back 46

Used in Metes and Bounds surveying, this method starts from a well-marked point of beginning and follows the boundaries of the land until it returns once more to the point of beginning.

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Principal Meridian:

Back 47

A major line running north-south on the rectangular survey or government rectangular survey method of land description. There are 36 principal meridians. In most of Colorado, ranges are numbered west from the 6th principal meridian, located near Lincoln, Nebraska.

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Prior Appropriation System:

Back 48

The system used in Colorado to determine water rights. The first person or organization to legally put tributary waters to beneficial use has a right to use those waters before others.

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Priority Status:

Back 49

Having legal precedence and preferred status. With regard to water rights, the party having priority status has the right to take water before a junior appropriator.

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Probate

Back 50

The process of transfering legal title of real and personal property from the estate of a person who has died.

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Range

Back 51

A six-mile-wide strip of land that runs in a north/south direction. Ranges are determined by government survey and are numbered in numerical order east or west of a principal meridian.

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Real Estate Investment Trust:

Back 52

Registered as securities, REITs pool funds for investment in loans usually for large commercial or industrial projects. The trust owns the real estate property passing taxation through to individual investors. The trustee manages the property for the benefit of the investors. The investors receive a certificate of ownership that can be sold to another investor.

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Real Property:

Back 53

Land; the surface of the earth and whatever is erected upon, growing upon, or affixed to the land, including that which is below it and the space above it.

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Rectangular Survey (United States Government Survey System):

Back 54

A method of describing or locating real property by reference to the governmental survey system whereby land is measured from principal baselines and meridians then divided into townships and sections.

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Remainder Interest (Remainderman):

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The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.

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Reversionary Estate (Life Estate):

Back 56

A type of ownership where after the death of a person having the right to use property, the property reverts back to the grantor of the life estate.

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Reversionary Interest:

Back 57

An interest in lands or other property, upon the termination of the preceding estate; a future interest. For example, a life estate reverts to the original owner upon the death of the life tenant. The original owner has Reversionary interest.

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Right of Survivorship:

Back 58

A characteristic of a joint tenancy; upon the death of one of the tenants, his/her rights in the property pass automatically to the surviving tenant or tenants.

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Riparian Rights:

Back 59

Rights to flowing water. The right of a landowner to water, on, under, or adjacent to his land.

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Section:

Back 60

A one mile square portion of land established by government survey and containing 640 acres.

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Security:

Back 61

A security is an investment with no management responsibilities and no liability. Limited partnerships, investment contracts, and Real Estate Investment Trusts (REIT) are securities. Condominiums with a mandatory rental pool are securities because investors do not have management control.

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Seizin:

Back 62

Possession of real estate by one entitled to it.

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Sole Ownership:

Back 63

Ownership of real estate by a single individual. Also called Estate in Severalty.

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Surface Rights:

Back 64

The right to use or occupy the surface of land.

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Survey:

Back 65

A precision measurement of land by a licensed surveyor. A survey is used to create or verify a legal description and may reveal an encroachment or zoning violation.

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Syndicate

Back 66

A general or limited partnershp created by two or more people to make real estate investments. The syndicator is the general managing partener. Investors have limited liability.

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Tenancy by the Entirety:

Back 67

A form of joint tenancy restricted to husbands and wives. Neither spouse can separately convey to break the tenancy.

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Tenancy in Common:

Back 68

Co-ownership with each entitled to possession according to proportionate share and no right of survivorship.

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Title:

Back 69

In real property, it is the right, or evidence of the right, to property.

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Timeshare:

Back 70

An exclusive right to use a property for a specified time each year.

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Townhouse:

Back 71

Ownership includes the home and lot and interest in common elements such as parking areas. Operates like Condominium ownership, but DOES include land.

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Trade Fixtures:

Back 72

Articles used in a business, such as signs, light fixtures, etc. Trade fixtures may be placed in a rented building by a tenant. Trade fixtures are the property of the tenant.

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Water Right:

Back 73

A right to use, in accordance with its priority, a certain portion of the waters of the state of Colorado by reason of the appropriation of such water.

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Merger:

Back 74

Occurs when a lesser interest in real property is merged or absorbed into a greater interest.

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Condominium fees:

Back 75

Include maintenance, insurance, and association fees.

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Homeowner capital gains exclusion:

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To qualify for the homeowner capital gains exclusion the homeowner must have occupied the home for at least two of the last five years.

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Fee simple ownership:

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Fee simple ownership is freely transferable.

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Rectangular Survey areas can be referred to in the following ways:

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Township: 6 miles x 6 miles (36 square miles) Tier: A horizontal strip of townships. Range: A vertical strip of townships. Section: 1 mile x 1 mile (1 square mile or 640 acres) Acre: 1/640 of a section (43,560 square feet)

Front 79

To figure the square footage of a piece of a section for a question such as the W 1/4 of the S 1/2 of the E 1/4, there is an easy trick:

Back 79

Multiply the bottom number of each fraction 4*2*4 = 32. You will need 1/32th of the section. A section is one square mile, 5280 ft x 5280 ft = 27,878,400 sqft. 27,878,400 / 32 = 871,200 sq ft.

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Abatement:

Back 80

A legal action to stop a nuisance. A abatement action requires the removal of the nuisance.

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Accession:

Back 81

Attaining title as a result of attaching or joining property to other property.

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Accretion:

Back 82

An addition to land from natural causes as, for example, from gradual action of the ocean or river waters.

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Ad Valorem:

Back 83

Latin meaning “according to value,” it is normally used to describe a tax based on the assessed value of real property.

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Annexation:

Back 84

Adding to, as when a city annexes outlying land.

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Appurtenant Easement:

Back 85

An easement with a dominant and servient property, which runs with the land. For example, an easement for a driveway which continues to exist when either property is sold or transferred.

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Assessment

Back 86

The valuation of property for the purpose of levying a tax or the amount of the tax levied.

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Buffer Zone:

Back 87

A strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another use (e.g., residential from commercial).

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Building Code:

Back 88

Local government regulations specify structural requirements of buildings.

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Cloud on Title:

Back 89

Any document, claim, unreleased lien or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title.

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Condemnation

Back 90

In real property law, the process by which property of a private owner is taken for public use, with compensation to the owner, under the right of eminent domain.

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Conditional Use Permit:

Back 91

Special permission for a use not usually allowed under a counties zoning regulations.

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Easement:

Back 92

A right or interest in the real property of another including the right to use another’s land for a specific purpose, such as a right of way.

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Easement by Necessity:

Back 93

An easement that must be given to allow a buyer of land access to property, also called implication of law. Prevents landlocked property.

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Easement by Prescription (Prescriptive Interest):

Back 94

An easement acquired by continuous, open and hostile use of the property for the period of time prescribed by state law. The period of time is 18 years in Colorado.

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Easement in Gross:

Back 95

An easement that belongs to the owner, such as a utility company. An easement in gross cannot be canceled by the landowner.