Loans, mortgage

In the real estate industry, the legal concept of land encompasses more than just the ground that we see or that
comprises a parcel of property. Land includes everything natural beneath and above the surface. The operative
term here is "natural"; but the concept of land need not be completely tangible.
It may be helpful to view land as an inverted pyramid extending from the center of the earth and projecting
outwards into the atmosphere. Land includes, but is not necessarily limited to the following elements:

1. Surface ground. This is what most people think of when they hear the term "land," but it’s obviously
   much more.
2. Subsurface soil and water. Landowners have traditionally owned the water underneath their land
   surface and can access it at will. However, many local governments and new regulations have begun to
   exercise control over aquifers and other subsurface water sources.
3. Minerals, oil and gas. This is an extension of subsurface land rights. These elements are prime
   commodities and can give the property owner additional income-if that owner still controls the rights to
   those subsurface elements.
4. Airspace above the ground. Believe it or not, air space is part of real estate. For example, your
   neighbor cannot build an overhanging bay window that extends into your property’s air space. An
   increasingly more common discussion of air space involve condominiums, in which the condo owner
   often only owns the air space within their units—but not the walls, floors or ceilings.
5. Permanently attached natural elements (trees, boulders and vegetation). The law does differentiate
   between permanent vegetation and annual crops. Trees, grass and perennials are called "fructus
   naturales" and are considered part of larger real estate. Planted annuals and crops are called "fructus
   industrials" and are considered personal property.

As you can see,
the land can contain both real property and personal property. Ownership of land can also be further
divided into different facets-which allow for separate uses and manners of possession.

Real estate in the United States follows the allodial system of property ownership. This system recognizes the
right of individuals to completely and fully own a parcel of property. This is no small thing, especially when this
system is compared to other systems:

1. Feudal system. All the lands are owned by the sovereign ruler, who then gives certain ownership or
   usage rights to his or her subjects, who then may allow peasants and other workers to lease land for
   farming or other use. This was the predominant system in Europe for much of the Common Era.
2. Communist system. Similar to the feudal system, all the lands are owned by the state-or the "people."
   Use of land is dictated by the state, and no individual can ever fully own any property.
3. Allodial system. The system used in the United States and much of the developed and developing
   democratic world.

In American-English legal theory, it is important to understand the difference between these elements of land,
real property, real estate and associated rights, such as air, mineral and water rights. This chapter will discuss
these elements in three categories:

1. Land. The ground surface and the natural elements below and above it.
2. Real Estate. Land and any improvements on it.
3. Real Property. Real estate and the different "rights" involved with it.

Most people treat the terms land, real estate and real property as interchangeable. They are not. Anyone who
aspires to invest in real estate or work in the real estate industry must understand the key distinctions between
these terms. Fortunately, they are not difficult concepts to grasp.