Property Characteristics

Property Characteristics — Texas Real Estate ## Real vs. Personal Property Real property includes land and all permanent attachments: structures, improvements, and items affixed to the land. Personal property is movable and not permanently affixed. The distinction determines what transfers with a real estate sale. Fixtures are items that began as personal property but became real property through attachment. Texas courts apply a three-part test: 1. Annexation — Is it physically attached to the real property? 2. Adaptation — Is it adapted or custom-fitted for the property? 3. Intent — Did the party intend the item to become part of the real property? Exam tip: Written contracts control. If the parties specify what stays or goes (e.g., "refrigerator excluded"), that agreement governs. When in doubt, a built-in item is a fixture. --- ## Physical Characteristics of Land | Characteristic | Description | |---|---| | Immobility | Land cannot be relocated; its geographic position is fixed | | Indestructibility | Land itself cannot be destroyed; improvements can be | | Non-homogeneity | Every parcel is unique in location and characteristics | ## Economic Characteristics of Land | Characteristic | Description | |---|---| | Scarcity | Fixed supply; no new land is created | | Modification | Improvements change value — on-site and off-site | | Permanence of investment | Real estate has a long economic life | | Area preference (Situs) | Location drives value; same improvement has different value in different locations | --- ## Bundle of Rights Texas property ownership includes the classic bundle: - Possession — right to occupy - Control — right to use within legal limits - Enjoyment — right to quiet enjoyment - Exclusion…