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Define Runs with the Land in Real Estate
Runs with the Land:
"Runs with the land" is a phrase used to describe certain rights or restrictions that stay with a piece of property, even when it changes owners. It's like a set of rules for the land that new owners must follow, no matter who they are or how many times the property is sold.
Example:
Imagine there's a large piece of land with two houses on it: House A and House B. The only way for the owner of House B to reach the main road is by using a driveway that crosses House A's land. The owner of House A agrees to grant an easement, which is a right that "runs with the land," allowing the owner of House B (and any future owners) to use the driveway.
When the owner of House A sells the property to a new owner, the easement remains in place. The new owner must continue to allow the owner of House B (and any of their successors) to use the driveway because the right to access the driveway "runs with the land."
"A Deep Dive for Real Estate Agents and Appraisers"
As you prepare for your real estate agent and appraiser exam, keep these key points in mind regarding rights and restrictions that "run with the land":
Types: There are various types of rights and restrictions that can run with the land, including easements, restrictive covenants, and equitable servitudes. Each of these affects the use and enjoyment of the property in different ways.
Burdens and Benefits: Rights that run with the land can be either burdensome (limiting the property owner's use of the land) or beneficial (granting additional rights to the property owner). Be aware of both types when evaluating a property.
Creation and Termination: These rights and restrictions can be created through agreements between property owners, deed provisions, or by operation of law. They can be terminated through various means such as expiration, release, merger, or abandonment, depending on the specific circumstances and local laws.
Legal Requirements: Certain legal requirements must be met for a right or restriction to run with the land, including proper notice, intent, and a connection between the burden or benefit and the land itself.
Impact on Value: Rights and restrictions that run with the land can affect the property's value and marketability. As a real estate agent and appraiser, you should consider these factors when advising clients or assessing a property's worth.
Disclosures: It's essential to disclose any rights and restrictions that run with the land to potential buyers so that they are fully informed about the property they are considering.
Understanding the concept of rights and restrictions that run with the land and their various aspects will help you better serve your clients and perform accurate property valuations. Good luck with your exam!
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the world of houses, yards, and trees,
There are rules that flow, like a gentle breeze.
When a rule is set, and it's there to stand,
We say it "Runs with the Land."
Whether owners come or owners go,
These steadfast rules continue to grow.
So when a property changes hand,
Remember the rules that Run with the Land!