To have a better understanding of real property, it is beneficial to start with land and real estate. The land is the basis for economic production, development, and the creation of wealth. From land, we get many benefits such as food, water, and materials to build our homes. Even so, we also get products such as oil, coal, and gas that supply energy.

On the contrary, real estate is the land at, above, and below the earth’s surface. Real estate includes property, land, buildings, air rights above the land, and underground rights below the land.

REAL PROPERTY IDENTIFICATION

The legal descriptions are described in two ways evidently, metes & bounds, and lot & block. A third way is the Public Land Survey System, as used in the United States.

• Metes. The term “metes” refers to a boundary defined by the measurement of each straight run.Metes is indeed specified by a distance between the terminal points and direction. Undoubtedly,a direction may be a simple compass bearing (magnetic), or a more precised accurate survey methods.
• Bounds. The term “bounds” refers to a more general boundary description. For instance, the abuttals and boundaries, a certain watercourse or a stone wall.Few more examples can be an adjoining public roadway, an adjoining property owner, or an existing building.
• The Lot & Block system is perhaps the simplest of the three main survey systems to understand. However,for a legal description in the Lot and Block system a description must identify:
  • the individual lot,
  • the block in which the lot is located, if applicable,
  • a reference to a platted subdivision or a phase thereof,
  • a reference to find the cited plat map
• a description of the map’s place of offiffcial recording

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Learn more: Bundle of property rights

REAL PROPERTY ECONOMIC ASPECTS

Land use, land valuation, and the determination of the incomes of landowners are among the oldest questions in economic theory. The land is an essential part of agriculture. Therefore it is the most important economic activity in pre-industrial societies. Consequently, with the advent of industrialization, important new uses for land emerge, as sites for factories, warehouses, and urban agglomerations. Also, the real property value taking the form of man-made structures and machinery increases relative to the value of the land alone. Hence the concept of the real property eventually comes to encompass effectively all forms of tangible fixed capital. With the rise of extractive industries, real property comes to encompass natural capital. With the success of tourism and leisure, real property comes to include scenic and other amenity values for this reason.

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Learn more: Real Property Analysis

The history of real estate RIGHTS

Since the 1960s, as law and economics fields are emerging, economists and legal scholars began to study the property rights enjoyed by tenants under the various estates. The economic benefits and costs of the various estates were too studied. This resulted in a much-improved understanding of the:

Tenants enjoy property rights under the various estates. These include the right to:

1. Decide how to use real property;

2. Exclude others from enjoying the property;

3. Transfer (alienate) some or all of these rights to others on mutually agreeable terms;

4. Nature and consequences of transaction costs when changing and transferring estates.

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FINAL WORDS

Undoubtedly, real estate properties come in different types, each with its pros and cons which you need to consider before determining which type will bring you the most profits and return on investment.

In addition, for more information on anything real estate-related, make sure to keep reading our blog which includes up-to-date information, step-by-step guides, and tips for current and future real estate agents.