Physical and economic characteristics of land and appurtenances

Physical characteristics

Land is immobile, indestructible, and unique. Immobility means the parcel's geographic location cannot move, even if soil or a structure is moved. Indestructibility describes land's enduring nature, not immunity from erosion, contamination, or destruction of improvements. Uniqueness means no two parcels are identical: equal dimensions do not give two lots the same location, view, or access.

Economic characteristics

Scarcity is limited supply relative to demand. Abundant remote acreage does not eliminate scarcity of desirable downtown sites. Scarcity does not ensure a high price without demand.

Improvements are changes to land, including buildings, roads, and utility systems, that affect use and value. Improvements can influence neighboring parcels too. Construction cost does not necessarily equal added market value.

Permanence of investment describes the long lasting commitment of capital to buildings and infrastructure. These investments cannot readily be moved when market demand shifts.

Area preference, or situs, is a location's desirability in the market. Access to jobs, transportation, shops, and recreation can affect it. Distinguish fixed physical location, or immobility, from buyers' preference for that location.

Appurtenances

An appurtenance is a right or benefit attached to real property. An appurtenant access easement benefits the dominant tenement and burdens the servient tenement. It generally passes with the benefited parcel. A personal permission to cross land, called a license, differs from a property right attached to a parcel. For a particular transaction, examine the governing documents and applicable law to determine the rights conveyed.

On an exam, ask whether the facts describe the land's nature, an influence on market value, or an attached right.