Real estate and Restrictions on Property

Howdy!

I'm here today to briefly explain the differences between real estate and real property, as well as to explain private and public restrictions on real estate. I'll throw in some examples just to make things a little more interesting for you. Enjoy!

Real Estate vs. Real Property:

Real Estate is generally defined as a certain parcel of land (surface, subsurface, and airspace) plus any improvements (mostly buildings and fixtures) reasonably attached to it.

Real Property is the same as Real Estate with one key addition. Real Property includes Real Estate and the bundle of rights that go along with ownership of real estate. These rights include the right to use, sell, exclude others, or transfer rights to others.

Here is an interesting article about a property rights dispute between New Mexico and Texas over water rights, one of the bundle of rights that goes along with Real Property. Although this article is addressing states' water rights and not private water rights, the dispute over who is entitled to what amount of water from a surface water source is very similar to many private water rights disputes, although many private disputes also involve defined water privileges, something that is missing from this case.

Private Restrictions on Real Estate:

Private restrictions on Real Estate include such things as covenants, conditions, and restrictions, liens, easements, and adverse possession, collectively known as encumbrances.
Covenants, conditions, and restrictions (CC&Rs) are legally binding restrictions on the use of real estate agreed to by the landowner, typically found in the deed to the land. It is very common for CC&Rs to be created by developers.
Liens are a claim on a property given as security for a debt, but that do not grant any ownership rights except in the case of failure to repay the debt. The two most common forms of lien are mortgages and mechanic's liens, both of which are voluntarily entered into. Involuntary liens also exist, in the form of judgement liens stemming from lawsuits.
Easements are rights given by one party to another to enter or use land in a specified manner. Easements can exist as easements appurtenant or easements in gross. An easement appurtenant exists between two adjoining properties and benefits the dominant estate while burdening the servient estate. Easements in gross, however, have no dominant estate, only a servient estate. Easements in gross generally benefit utility companies, highway departments, or other legal entities rather than an estate. Easements can be created expressly, implicitly, or by prescription.
Similar to a prescriptive easement, adverse possession is a legal process that allows people to gain ownership of land they do not own or purchase by exclusively, openly, and continuously using the land in a hostile manner for a certain period of time.

This is an article that discusses an ongoing right-of-way easement dispute going on in New Mexico.

Public Restrictions on Real Estate

Public restrictions on real estate represent the government's ability to restrict land use and ownership through taxation, eminent domain, police power, and escheat.
Property taxation is one of the main sources of revenue for local governments and school districts. Property taxes are usually levied as a millage on a certain ratio of the fair market value of parcels of real estate.
Eminent domain is the ability of a government to acquire private property for public use, so long as the owner of the real estate is justly compensated.
Police power is a way of describing a government's right to regulate in the interest of public health, safety, and welfare. The primary means of police power usage are through comprehensive general planning and zoning. Zoning regulates what types of land use are allowed where and the intensity of use of those lands.
Lastly, escheat is the right of a government to obtain the ownership of a property should the property owner die with no will and no next of kin.

This article looks at a brewing eminent domain lawsuit in Sacramento over the city using its eminent domain powers to purchase a parcel of real estate from private owners for use in building a new Sacramento Kings basketball arena.