Incorporeal

What is Incorporeal in Real Estate?

In the realm of real estate, the term “incorporeal” refers to intangible legal interests. Unlike tangible property (or corporeal property), which has a physical manifestation such as buildings or land, incorporeal property involves rights or privileges that don’t have a physical form but are still enforceable by law.

Examples of Incorporeal Interests:

Easement: A right to cross or use someone else’s land for a specified purpose, such as a right-of-way.
License: Temporary permission for an individual to use a property for a specific purpose, which can be revoked.
Profit à Prendre: The right to enter someone’s land and take something of value (like minerals, timber, etc.).
Restrictive Covenants: Conditions written into a property deed that restrict or limit the use of the property.

Frequently Asked Questions (FAQs)

Q1: How does an easement differ from a license?

A1: An easement is a permanent right to use someone else’s land for a particular purpose and runs with the land, whereas a license is a temporary, revocable permission for certain use of the land.

Q2: Can incorporeal rights be transferred?

A2: Yes, many incorporeal rights, like easements, can be transferred from one party to another. However, some rights, like licenses, are usually personal to the individual and cannot be transferred.

Q3: Are incorporeal rights considered real property or personal property?

A3: Incorporeal rights related to real estate are typically considered real property since they pertain to the use or benefit of the property, even though they are intangible.

Q4: What happens to an easement if the property is sold?

A4: Easements generally run with the land, meaning they continue to exist even when the property is sold to a new owner. The new owner must honor the easement.

Q5: Can a restrictive covenant be enforced in court?

A5: Yes, restrictive covenants can be legally enforced in court, provided they are reasonable and don’t violate any laws or public policies.

Easement: A legal right to use another’s land for a specific limited purpose.
License: Permission to do something on another’s property, making it lawful what would otherwise be unlawful.
Profit à Prendre: The right to take minerals, crops, timber, or other resources from another’s land.
Restrictive Covenant: A binding stipulation concerning the utilization or state of the property.
Servitude: A burden on property, granting use or benefit to another property or party.
Tenancy in Common: A form of co-ownership where each owner owns a separate fractional share of undivided property.

Online Resources

References

American Law Institute, Restatement (First) of Property.
Garvey, Vincent F. “Easements and Licenses in Property Law.” ABA Publishing, 2017.

Suggested Books for Further Studies

“Principles of Property Law” by Henry Smith
“Thompson on Real Property” by David A. Thomas
“Real Estate Law” by Marianne M. Jennings
“Modern Real Estate Practice” by Fillmore W. Galaty, William J. Sauer, and Robert C. Kyle

Real Estate Basics: Incorporeal Fundamentals Quiz

### Which term refers to a permanent right to use someone else’s land for a specified purpose? - [x] Easement - [ ] License - [ ] Tenancy - [ ] Lease > **Explanation:** Easement refers to a permanent right to use another person's land for a particular purpose, such as for a driveway or utility line. ### What characterizes the revocability of a license in real estate? - [ ] A license is permanent and not revocable. - [x] A license is temporary and can be revoked. - [ ] A license transforms into an easement after a specific period. - [ ] A license is inheritable. > **Explanation:** A license is temporary permission given to someone to use land and can be revoked at any time by the grantor, unlike an easement, which is usually permanent. ### What must a restrictive covenant be in order to be enforceable in court? - [ ] Allow unlimited exploitation of property resources - [x] Be reasonable and comply with laws and public policies - [ ] Provide monetary benefit to the property owner - [ ] Be recent > **Explanation:** For a restrictive covenant to be enforceable, it must be reasonable and comply with laws and public policies, limiting certain actions to maintain property values or advance neighborhood interests. ### What is Profit à Prendre? - [x] The right to take resources like minerals, crops, or timber from another's land - [ ] A type of lease agreement - [ ] A form of revocable license - [ ] Permanent ownership of another property > **Explanation:** Profit à Prendre is a right to take minerals, crops, timber, or other resources from another's land, allowing for extraction or collection. ### Which of the following is an example of an incorporeal right? - [ ] Owning a residential building - [x] An easement to access a neighboring property - [ ] Having a garden on one's land - [ ] A deed-registered ownership of vacation home > **Explanation:** An easement to access a neighboring property exemplifies an incorporeal right since it is an intangible benefit related to the use of a property. ### What typically happens to an easement when the property is sold? - [ ] It is annulled - [ ] It is paused until re-negotiated - [x] It transfers with the property to the new owner - [ ] It converts into a license > **Explanation:** An easement generally transfers with the property to the new owner, obligating them to honor the existing easement terms. ### Which entity often enforces restrictive covenants in a community? - [ ] Local municipalities - [ ] Federal government - [x] Homeowners' Associations (HOAs) - [ ] Title insurance companies > **Explanation:** In many communities, Homeowners' Associations (HOAs) are responsible for enforcing restrictive covenants to ensure conformity to community standards and rules. ### What distinguishes an incorporeal right compared to corporeal property? - [x] It doesn't have a physical form but relates to legal interests. - [ ] It includes tangible real estate assets only. - [ ] It cannot be legally transferred. - [ ] It must be valueless to be allowed. > **Explanation:** Incorporeal rights do not have a physical form but relate to legal interests in property, such as easements and licenses. ### Can incorporeal rights be recorded in public records? - [x] Yes, they can be recorded like other property interests. - [ ] No, only physical properties can be recorded. - [ ] They are only recognized privately, not publicly. - [ ] They are not typically documented. > **Explanation:** Incorporeal rights can be recorded in public records similarly to other property interests to provide transparency and legal documentation. ### How can a license in property law differ from both corporeal and incorporeal property interests? - [ ] It grants permanent residence rights. - [ ] It automatically ensures property ownership transformation. - [x] It is a temporary grant, revocable by the licensor. - [ ] It applies to property tax exemptions. > **Explanation:** A license in property law differs as it is only a temporary, revocable permission to use the property under specified conditions, unlike permanent property interests.