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Updated about 6 years ago on . Most recent reply

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Ramin R kamal
  • Denver, CO
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Meaning of Appurtenance

Ramin R kamal
  • Denver, CO
Posted

I am just starting out to learn Real Estate and get my license. I was reading some books and I came across a legal term called: "Appurtenance." The meaning of is when a right in a land is inherent to the person as the natural consequences of property ownership. Therefore, whomever leases your land for example, don't own it but have license to do something on it.

Now, here is my question: What if my land has Oil in it. Can the tenant drill or use the natural resources of the land or build upon the land? In general what rights does the tenant have on the land?

Please note: I do not own a land (I wish I did) But I don't. This question is just for learning experience.

Thanks for your input in advance. 

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Jay Hinrichs
Professional Services
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
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Jay Hinrichs
Professional Services
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Originally posted by @Ramin R kamal:
Originally posted by @Ned Carey:

@Ramin R kamal it depends on what you lease says.  People sell or lease things, like oil or mineral rights.  Ask @Jay Hinrichs about tree cutting rights.

 Thank you for your answer. So, this answer tells me that its not Impossible for the tenant to extract product from the leased land. It's just that it depends on the contract clauses. 

I will add this to my notes.

Also with regards to the tree cutting, I think the tree is a real property because it doesn't require a cultivation and therefore, its a fruit of nature as they say. 

Thanks again. 

of course it all depends..   typically though Fee simple ownership of the land includes all the tree's  trees are real property.

if the mineral or gas or oil rights are not reserved then the fee simple owner owns those.. 

someone leasing the land has no rights to any of these. unless there is a contract that specifically spells it out.

thats why you have mineral rights in deed form.. you have Timber rights in Deed form and Water rights especially on the west coast were water is a major issue as well think the old western movies.. 

Although I have personally leased lands for crops.. I have one right now 117 acres that i have a lease option to buy.. the owner though in contract allowed me to sub lease the grass seed farming.  not worth a whole heck of a lot it makes us maybe 35 to 40k a year net..  so really nothing to get excited about. 

There is a lot of lease ground in our area for nursery stock..   And of course I made a living buying and selling timber deeds through out the years.. 

Also keep in mind Timber deeds can be 1031 .. and fun fact is the 1031 Starker exchange was created in Oregon by the Starter family that wanted to exchange timber land.  Not many know this out side of the industry.   Thanks for the mention Ned.

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JLH Capital Partners

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