Unit 2
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Accession
The process by which real property increases in size or value through natural or artificial means, such as accretion (gradual deposit of soil by water) or avulsion (sudden change in watercourse).
A river gradually deposits soil on a landowner's property in downstate Illinois, increasing the acreage through accession by accretion.
Air Rights
The right to use, control, and occupy the airspace above a parcel of land, which can be sold or leased separately from the surface rights (for example, for building skyscrapers or air easements).
The owner of a small lot in downtown Chicago sells the air rights above 100 feet to allow construction of a tall office building while retaining surface use.
Annexation
The legal process of attaching personal property to real property so that it becomes a fixture and part of the real estate. Intent, adaptation, and relationship of the parties determine if annexation has occurred.
A homeowner installs a built-in dishwasher and custom cabinets that become permanently attached; these items are now annexed to the real property and convey with the sale.
Appurtenance
A right, privilege, or improvement that passes with the conveyance of real property, such as easements, water rights, or fixtures. It is attached to the land and transfers automatically with the deed.
A home in rural Illinois comes with an appurtenant easement allowing the owner to cross a neighbor's land to access a public road.
Attachment
The act of affixing personal property to real property, making it a fixture. In legal terms, it also refers to a court order seizing property to secure a judgment.
When a new furnace is installed and connected to the ductwork of a house, it becomes attached and is considered part of the real estate rather than personal property.
Bill of Sale
A written document that transfers ownership of personal property from seller to buyer. It is used for items that do not automatically convey with real estate, such as furniture or equipment.
During a home sale in Naperville, the seller provides a bill of sale for the washer, dryer, and window treatments being sold separately from the real property.
Bundle of Legal Rights
The collection of rights that come with ownership of real property, including the right to possess, use, enjoy, exclude others, and dispose of the property. These rights are protected by law but subject to government limitations.
When purchasing a condo in Chicago, the buyer receives the full bundle of legal rights, subject to HOA rules, zoning laws, and eminent domain powers.
Chattel
Personal property that is movable and not permanently attached to real estate. Examples include furniture, vehicles, and appliances that are not fixtures. Chattel is transferred by bill of sale, not deed.
The antique dining table and living room sofa in a listed home are chattel and do not automatically transfer to the buyer unless specified in the sales contract.
Deed
A legal document that transfers ownership (title) of real property from grantor to grantee. It must be in writing, signed, delivered, and accepted to be valid. Types include warranty deeds, quitclaim deeds, and special warranty deeds.
At closing in Springfield, the seller signs and delivers a warranty deed to the buyer, officially transferring title to the single-family home.
Emblements
Crops that are planted and cultivated annually (fructus industriales), such as corn or wheat. They are considered personal property of the tenant or farmer who planted them, even if the land is sold.
A tenant farmer in central Illinois plants soybeans. If the lease ends or the land is sold before harvest, the tenant retains the right to harvest the emblements as personal property.
Fixture
Personal property that has been attached to real property in such a way that it becomes part of the real estate. Tests include method of attachment, adaptation to the property, and intent of the parties.
A ceiling fan, light fixtures, and built-in microwave oven are fixtures in a home and convey with the real estate unless specifically excluded in the sales contract.
Improvement
Any permanent addition or betterment to land or buildings that increases value or utility, such as buildings, fences, driveways, or landscaping. Improvements are part of real property.
Adding a swimming pool, new roof, and detached garage are capital improvements that increase the value of a residential property in the Chicago suburbs.
Land
The earth's surface, including soil, rocks, and natural resources, extending downward to the center of the earth and upward to infinity (subject to air rights). Land is the foundation of real property.
Raw land purchased in Will County for future development includes the surface, subsurface minerals, and air rights above it.
Manufactured Housing
A dwelling built in a factory and transported to a site, including mobile homes and modular homes. In Illinois, it may be classified as real or personal property depending on whether it is permanently affixed to land and titled accordingly.
A double-wide manufactured home placed on a permanent foundation in a rural Illinois county and titled as real property becomes part of the real estate for financing and taxation purposes.
Personal Property
All property that is not real property. It includes chattels (movable items) and is transferred by bill of sale rather than deed. Also called chattel or personalty.
The refrigerator, curtains, and patio furniture in a home for sale are personal property and must be negotiated separately if the buyer wants them included.
Real Estate
Land plus all human-made improvements permanently attached to it, such as buildings, fences, and utilities. It includes the physical land and structures but not the bundle of legal rights.
A commercial building and the 2-acre lot it sits on in downtown Peoria constitute real estate that is being marketed for sale or lease.
Real Estate License Act of 2000
The Illinois statute that governs the licensing and regulation of real estate brokers, managing brokers, and leasing agents. It establishes requirements for licensure, defines prohibited practices, and creates the Real Estate Administration and Disciplinary Board.
All real estate professionals practicing in Illinois must comply with the Real Estate License Act of 2000, which requires continuing education and adherence to ethical standards enforced by IDFPR.
Real Property
Real estate plus the bundle of legal rights of ownership. It includes land, improvements, and the rights to use, enjoy, and dispose of the property. Real property is transferred by deed.
When buying a house in Evanston, the purchaser acquires real property, which includes the land, house, fixtures, and legal rights such as easements and mineral rights.
Severance
The act of separating a fixture or improvement from real property, converting it back into personal property. Once severed, it no longer conveys with the real estate.
A homeowner removes built-in bookcases and a chandelier before selling; these items have been severed and are now personal property that the seller can take.
Situs
The location or site of a property. In real estate, situs is a key value factor because location determines desirability, zoning, school districts, taxes, and market demand.
A home's situs on a quiet cul-de-sac near excellent schools in Naperville significantly increases its market value compared to a similar home near a busy highway.
Subsurface Rights
The rights to the minerals, oil, gas, water, and other resources below the surface of the land. These rights can be severed and sold or leased separately from surface rights.
A landowner in southern Illinois sells the mineral rights to a coal company while retaining surface rights to farm the land.
Surface Rights
The rights to use and enjoy the surface of the land, including building, farming, and access. Surface rights are what most buyers acquire unless subsurface or air rights have been previously severed.
The buyer of a 40-acre parcel in McHenry County receives surface rights to build a home, plant crops, and use the land, subject to any existing easements.
Trade Fixture
Personal property used in a trade or business that is attached to real property but remains personal property of the tenant. Trade fixtures are removable by the tenant at the end of the lease.
A restaurant tenant installs commercial ovens, refrigeration units, and a custom bar that are trade fixtures; the tenant can remove them when the lease ends, restoring the space to its original condition.