In my last post, “Real Estate Alphabet Soup: Q is for Quitclaim” I continued my primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter “R.”
R is for “Restrictive Covenants” which are written promises governing and restricting the use of “Real Property”, which can include the kinds of buildings that may be constructed on it. Restrictive Covenants may be included in a deed or in a separate written document, which is recorded in the official land records of the county in which the real property is located. The Restrictive Covenants create an encumbrance on the property which “run with the land” so that any future owners who may subsequently take title to the property do so subject to those restrictions.
R is also for “Real Property”. Although it may be stating the obvious, everything regarding real estate arises out of “Real Property”. “Real Property” is the land, including the surface and anything on the surface, such as buildings and landscaping. Real Property also includes anything under the surface, such as water and minerals, as well as the area above the surface, the air and sky. “Real Property” is distinguished from “Personal Property” which may include equipment and furnishings located within a building on the Real Property.
At the “root” of all real estate is “Real Property,” the land, earth and all that is on, below, and above it. The owner of “Real Property” owns not only the land, but all of the crops or forest growing on the land, and the water and natural products which may be present underneath the surface. That includes mineral rights, oil and natural gas, if the owner is so fortunate to discover those valuable natural resources on the property. So when speaking of “Real Property” there may be buried “treasure” on the property and, since, it also includes the air above, the old adage may be true that “the sky is the limit.”
In my next post, I will move on to the letter “S”, the next letter in this real estate “alphabet soup.”
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.
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