1. Washington Real Estate Law © Copyright 2010 Rockwell Publishing, Inc. Lesson 3: The Nature of Real Property

2. © Copyright 2010 Rockwell Publishing, Inc. Introduction In this lesson: methods of land description, attachments (natural attachments and fixtures), and appurtenances (air, water, mineral, support, and oil and gas rights).

3. © Copyright 2010 Rockwell Publishing, Inc. Land Description In Washington, owners are usually found liable for misrepresenting boundaries of their property. Even if misrepresentation is innocent. Agents are not usually liable for innocent misrepresentations to buyer. But agent must be alert to possible misrepresentations, and employ reasonable efforts to confirm or refute statements of seller. Misrepresenting boundaries

4. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Three most commonly used systems of land description are: metes and bounds, government survey, and lot and block.

5. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description The metes (measurements) and bounds (boundaries) system is oldest of the three methods of describing land. Used by original colonists. Still frequently used in rural areas and especially common in many eastern states. Metes and bounds descriptions

6. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Metes and bounds description: A system of land description in which the boundaries of a parcel of land are described by reference to monuments, courses, and distances. Metes and bounds descriptions

7. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Monuments: Natural objects such as rivers or trees, or man-made objects such as roads or survey markers. Courses: Directions, in the form of compass readings. Distances: Measured in any convenient unit of length. Metes and bounds descriptions

8. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description A metes and bounds description gives a starting point and then proceeds around the boundary by describing a series of courses (compass readings) and distances. Continues until boundary has been described all the way around to the point of beginning. Metes and bounds descriptions

9. © Copyright 2010 Rockwell Publishing, Inc. Metes and Bounds Description Point of beginning: A convenient and well-defined starting point that can be easily identified (such as the “old oak tree”). Always described by reference to a monument. Doesn’t have to be monument itself (“200 feet from old oak tree”). Point of beginning

10. © Copyright 2010 Rockwell Publishing, Inc. Metes and Bounds Description In a metes and bounds description, a direction is described by reference to a compass point. Compass directions are described in terms of degree of deviation from north or south. Example: Northwest or 315° is written as north 45° west, since it is a deviation of 45° to the west of north. Compass bearings

11. © Copyright 2010 Rockwell Publishing, Inc. Metes and Bounds Description Discrepancies sometimes occur between the various elements of the description. Usually because original surveyor made a mistake. Conflicting elements

12. © Copyright 2010 Rockwell Publishing, Inc. Metes and Bounds Description Priority of various elements: natural monuments (“Sander’s Creek”), then man-made monuments (“Avondale Road”), then courses (“south 8° east”), then distances (“310 feet”), then names (“the Holden Ranch”), and then the area or quantity of acreage (“80 acres”). Conflicting elements

13. Summary © Copyright 2010 Rockwell Publishing, Inc. Metes and Bounds Descriptions  Metes and bounds  Monuments  Courses  Distances  Point of beginning

14. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Government survey: A system of land description in which the land is divided into squares called townships, and each township is, in turn, divided up into 36 sections, each one square mile. Government survey descriptions

15. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Also called the rectangular survey method because it divides the land into a series of rectangles or grids. Each grid is composed of two sets of lines, one set running north/south and the other east/west. Government survey descriptions

16. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Government survey method emerged after the American Revolution. Federal government owned huge amounts of undeveloped land. Land speculators and settlers were moving into the territories. Metes and bounds method was not feasible. Used mainly in states west of the Mississippi. Government survey descriptions

17. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions The original north/south line in each grid is called the principal meridian. The original east/west line in each grid is called a base line. Meridians and base lines

18. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions Each principal meridian is given its own name (Willamette Meridian, etc.). There are 35 principal meridians and 32 base lines across the country. Meridians and base lines

19. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions Additional east/west lines, called correction lines, run parallel to the base lines at intervals of 24 miles. Additional north/south lines—called guide meridians—are also established at 24-mile intervals.  All true north/south lines converge as they approach North Pole.  So guide meridian only runs to next correction line. Meridians and base lines

20. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions The large squares created by the intersection of guide meridians and correction lines are further divided by additional north/south lines running at six-mile intervals, called range lines.  Divide the land into columns called ranges. Meridians and base lines

21. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions Additional east/west lines run at six-mile intervals from the correction lines and are called township lines.  The east/west lines divide the land into rows or tiers called township tiers. Meridians and base lines

22. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions Township: The square of land located at the intersection of a range and a township tier. Identified by its position relative to the principal meridian and base line. Each measures 36 square miles. Townships and sections

23. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions A township is divided into 36 sections, which are each one square mile (640 acres). The sections are always numbered 1 through 36 in a specified sequence. Townships and sections

24. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions Parcels of land smaller than sections can be identified by reference to sections and partial sections. Townships and sections NW1/4 160 ACRES NE1/4 160 ACRES SW1/4 160 ARCES NE1/4 OF SE1/4 40 ACRES

25. © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions Government lot: In the government survey system, a parcel of land that is not a regular section. Caused by curvature of the earth, convergence of range lines, and human surveying errors. Referred to by lot number. Also used when body of water or obstacle prevents accurate square-mile section. Government lots

26. Summary © Copyright 2010 Rockwell Publishing, Inc. Government Survey Descriptions  Ranges  Township lines  Township tiers  Township  Section  Government lot  Government survey  Principal meridian  Base line  Correction line  Guide meridians  Range lines

27. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description In terms of surface area, more land in U.S. is described by the government survey method. In terms of number of properties, the lot and block is most important description method.  Method used most in metropolitan areas. Lot and block descriptions

28. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Lot and block: The system of land description used for subdivided land, in which properties are assigned lot number on a plat map, and the plat map is recorded. After map is recorded, any reference to one of the numbered lots on specified plat is sufficient legal description of lot. Lot and block descriptions

29. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Plat maps frequently contain information that includes: measurements of area and right-of-ways, locations of various easements and survey markers, proposed streets, blocks, and lots of the subdivision, conditions and restrictions applying to the land, topographical details such as elevation, and school sites and recreational areas. Lot and block descriptions

30. Summary © Copyright 2010 Rockwell Publishing, Inc. Lot and Block Descriptions  Lot and block  Plat  Recorded plat map

31. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Not all real property can be described simply by reference to a position on the face of the earth. Air lot: A parcel of property above the surface of the earth, not containing any land. Example: Condominium. Air lots

32. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description United States Geodetic Survey and most large cities have established datums and bench marks as legal reference points for measuring elevation. Datum: An artificial horizontal plane, such as sea level. Bench mark: A point whose elevation has been officially measured relative to a datum. Air lots

33. Summary © Copyright 2010 Rockwell Publishing, Inc. Air Lots  Air lot  Datum  Bench mark

34. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description Typical problems that might occur are: incorrect descriptions, indefinite or ambiguous descriptions, omission of part of the description, adjoining owners disagreeing over boundary lines, and modern surveys that don’t match the original survey lines. Description problems/disputes

35. © Copyright 2010 Rockwell Publishing, Inc. Methods of Description These problems can often be cured by: correcting the description, possession, agreement or acquiescence, the common grantor theory, or litigation and a court decision. Description problems/disputes

36. © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes Error can often be solved simply by having party who transferred the property give a new deed with the correct description. When this is not possible, a court order can be obtained to correct the description. This is called a reformation. Correcting the description

37. © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes Sometimes a description problem or boundary dispute can be resolved by possession. Example: Seller owns property in two counties, both referred to as the “Thomson Ranch.” Deed transfers “Thomson Ranch” to buyer. Although legal description is insufficient, deed may be valid since buyer’s possession of one ranch makes it clear which property was transferred. Possession

38. © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes Boundary dispute may also be resolved by adverse possession. Adverse possession: Acquiring title to real property owned by someone else by means of open, notorious, exclusive, continuous and uninterrupted possession, in a manner hostile to the true owner, for ten years. Possession

39. © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes Recognition and acquiescence: A method of solving a boundary dispute, similar to adverse possession, in which the claimant must show that the boundary is well-defined and has been acquiesced to for ten years. Recognition and acquiescence

40. © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes Boundary line agreement: Parties simply agree on boundary. Becomes binding on parties and all subsequent owners if put in writing and signed and acknowledged in same manner as a deed. Must use legal descriptions and include a survey map that has been filed in the county where the land is located. Boundary line agreement

41. © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes If a common grantor has clearly designated a boundary: boundary will be binding on all subsequent owners of property, even if it was not true or original boundary. Common grantor

42. © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes Problems often arise in connection with government survey method of land description. When much of West was originally surveyed, surveyors worked under harsh conditions, with inadequate tools and equipment. When these errors are discovered, court normally attempts to maintain line as intended by original surveyors. Court decision

43. Summary © Copyright 2010 Rockwell Publishing, Inc. Description Problems/Disputes  Reformation  Adverse possession  Recognition and acquiescence  Boundary line agreement  Common grantor  Court decision

44. © Copyright 2010 Rockwell Publishing, Inc. Attachments Attachments: Things attached to the land (like buildings and fences) and things growing on the land (like trees and shrubs). Two categories of attachments: natural attachments (trees and crops, etc.), and man-made attachments (fixtures).

45. © Copyright 2010 Rockwell Publishing, Inc. Attachments Natural attachments: Things growing on the property. There are two types of natural attachments: naturally occurring trees and plants; and plants grown and cultivated by people. Natural attachments

46. © Copyright 2010 Rockwell Publishing, Inc. Attachments Both types are considered part of the real property. Natural attachments are included in sale of land unless specifically excepted from sale in the purchase agreement. Natural attachments

47. © Copyright 2010 Rockwell Publishing, Inc. Attachments Once they have been severed from the land, natural attachments are personal property. Personal property is governed by a different set of rules than real property. Washington has adopted a statute called the Uniform Commercial Code (UCC) to deal with the sale of goods. Natural attachments

48. © Copyright 2010 Rockwell Publishing, Inc. Attachments The UCC defines crops as goods and governs their sale. Under UCC, crops specifically identified in a contract may be considered personal property before actual severance from the land. This is referred to as constructive severance. Natural attachments

49. © Copyright 2010 Rockwell Publishing, Inc. Natural Attachments Doctrine of emblements: A special rule that applies to crops of tenant farmers. If tenancy is for an indefinite period of time, and tenancy is terminated (through no fault of the tenant) before the crop is ready for harvest, tenant has the right to re-enter the land and harvest the crop. Doctrine of emblements

50. © Copyright 2010 Rockwell Publishing, Inc. Natural Attachments Crop must be: produced annually, by labor and industry of farmer. If crops are an annual product of perennial plants (apples, etc.), right to re-enter and harvest applies only to first crop that matures after tenancy ends. Doctrine of emblements

51. Summary © Copyright 2010 Rockwell Publishing, Inc. Natural Attachments  Natural attachments  Uniform Commercial Code  Constructive severance  Doctrine of emblements

52. © Copyright 2010 Rockwell Publishing, Inc. Attachments Fixture: An item that used to be personal property but has been attached to or closely associated with real property in such a way that it has legally become part of the real property. Fixtures

53. © Copyright 2010 Rockwell Publishing, Inc. Attachments To determine whether item is fixture or personal property, courts use series of tests, including: method of attachment, intention of annexor, adaptation of item to the realty, relationship of the parties, and whether there is a written agreement. Fixtures

54. © Copyright 2010 Rockwell Publishing, Inc. Fixtures When an item is permanently attached to the land, it becomes part of the real estate. Method of attachment

55. © Copyright 2010 Rockwell Publishing, Inc. Fixtures An attachment is considered to be permanently attached when it is: permanently resting on the land (houses, barns, and other buildings), affixed to the land by roots (trees, shrubs), embedded in the earth (sewer lines, septic tanks), or attached by any enduring method (cement, plaster, nails, bolts, screws). Method of attachment

56. © Copyright 2010 Rockwell Publishing, Inc. Fixtures Genuine physical attachment (called actual annexation) is not absolutely necessary for an item to be considered a fixture. Example: Outbuilding resting on ground instead of foundation. Method of attachment

57. © Copyright 2010 Rockwell Publishing, Inc. Method of Attachment Constructive annexation: When completely movable items are regarded as so strongly connected with the property that they are considered fixtures, even though they are not actually attached to the realty. Also applies to items that have been temporarily removed (built-in appliance removed for repairs). Constructive annexation

58. © Copyright 2010 Rockwell Publishing, Inc. Fixtures The method of attachment test can be rigid and may lead to inconsistent results. Courts have decided that the intention of the annexor is a more important test.  Annexor: The person who placed the item on the property. Intention of the annexor

59. © Copyright 2010 Rockwell Publishing, Inc. Fixtures Annexor’s intent: if annexor intended item to become part of realty, then item will generally be considered real property; and if annexor didn’t intend item to become part of real property, item will be considered personal property. Intention of the annexor

60. © Copyright 2010 Rockwell Publishing, Inc. Fixtures There must be objective evidence of annexor’s intent. Secret intent of annexor does not control. Other tests (including method of attachment) viewed as objective evidence of intent. Intention of the annexor

61. © Copyright 2010 Rockwell Publishing, Inc. Fixtures When item is essential to the use and operation of the property, or was designed specifically for use in a particular location, it is probably a fixture. Example: Pews in a church. Adaptation to the realty

62. © Copyright 2010 Rockwell Publishing, Inc. Fixtures When attempting to determine intent, court considers relationship of parties (landlord-tenant, seller-buyer, owner-creditor, etc.). Relationship of the parties

63. © Copyright 2010 Rockwell Publishing, Inc. Relationship of the Parties Trade fixtures: Articles of personal property annexed to real property by a tenant for use in his trade or business. Tenant usually intends to remove items. Trade fixtures can be removed unless provision in lease states otherwise. Tenant has duty to restore premises or compensate owner for damages caused by removal. Trade fixtures

64. © Copyright 2010 Rockwell Publishing, Inc. Relationship of the Parties Agricultural fixtures: Certain farming equipment and items such as small tool sheds or prefabricated henhouses. May be removed by tenant farmers when they leave the property. Trade fixtures

65. © Copyright 2010 Rockwell Publishing, Inc. Fixtures Regardless of court tests, if there is a written agreement between parties stipulating how a particular item is to be treated, court will respect and enforce written agreement. Written agreement

66. © Copyright 2010 Rockwell Publishing, Inc. Fixtures Mobile/manufactured home used to be classified as personal property until it was permanently attached to land. Now, Washington has title registration system for manufactured homes (similar to one used for motor vehicles.) For a manufactured home to become real property, it must go through procedure called title elimination. This eliminates the registered title, and home becomes part of the real property it is located on. Manufactured homes

67. © Copyright 2010 Rockwell Publishing, Inc. Fixtures Special problems with fixtures may arise when secured financing is involved. Secured financing occurs when borrower and lender agree that personal property/fixtures will secure a loan or credit line. Article 9 of the Uniform Commercial Code (UCC) governs secured transactions. Secured financing and fixtures

68. © Copyright 2010 Rockwell Publishing, Inc. Fixtures A security agreement specifies terms of the transaction and a financing statement is filed. Financing statement: Gives constructive notice that a security interest exists in fixture. Any later purchasers of the real estate are put on notice. If a default occurs, articles can be repossessed by holder of security interest. Secured financing and fixtures

69. Summary © Copyright 2010 Rockwell Publishing, Inc. Fixtures  Fixtures  Actual annexation  Constructive annexation  Annexor  Trade fixtures  Agricultural fixtures  Title elimination  Financing statement

70. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Appurtenance: A right, privilege, or improvement that is associated with a piece of real property. When real property is sold or transferred, these rights are normally transferred along with the property. Rights may also be sold separately or limited by past transactions.

71. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Imagine property as an inverted pyramid with its tip at the center of the earth and its base extending into the sky.

72. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Property owner has rights to: the surface of the land within the boundaries of the property, plus everything under or over the surface that falls within the pyramid.

73. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Examples of appurtenances: air rights, water rights, mineral rights, support rights, and oil and gas rights.

74. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances According to inverted pyramid idea, property owner’s rights theoretically extend to upper limits of sky. However, through Air Commerce Act of 1926 and Civil Aeronautics Act of 1938, Congress declared U.S. government has complete control over U.S. airspace. Air rights

75. © Copyright 2010 Rockwell Publishing, Inc. Air Rights Government has restricted some air rights, but property owners still have exclusive right to use lower reaches of airspace over their property. Cannot impede or interfere with normal air traffic. Have right not to be harmed or damaged by use of airspace above property (low-flying aircraft scaring egg-laying chickens, etc.). Use of airspace

76. © Copyright 2010 Rockwell Publishing, Inc. Air Rights Property owner may sell rights to airspace above property separately from surface land. More common in large metropolitan areas. Example: Hotel purchases air rights above nearby building to preserve views. Sale of airspace

77. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Water is vital resource across country. Source of much legislation and litigation, particularly in arid West. Water rights

78. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Two main types of water rights: riparian rights, and appropriative rights. Water rights

79. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Riparian rights: Water rights that arise on lands that are bordered or crossed by water, or contain a body of water within their boundaries. Every landowner who has land touching the water has equal right to use the water. Riparian rights

80. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Riparian owners have right to: take water for domestic uses such as drinking, bathing, and watering a personal garden; and use water for swimming, boating, or other recreational purposes. Riparian rights

81. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Riparian owners may not: diminish water flow in quantity, quality, or velocity if they are situated upstream; or divert water for use on non-riparian land (land that does not adjoin the water). Riparian rights

82. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Common law of England recognized riparian rights. Still used in some states. Many western states have moved away from riparian rights to system of appropriative rights. Riparian rights

83. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Appropriative rights: The right to use water in a way that diminishes the normal quantity, established by obtaining a water permit from the state government. Water may be used on any land for purpose specified in permit application. Appropriative rights

84. © Copyright 2010 Rockwell Publishing, Inc. Water Rights If two parties both have appropriation permits for same body of water, first in time is first in right. Party who obtained permit first can use full amount of water specified in permit, even if it leaves too little water for one with later permit. Appropriative rights

85. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Washington’s Water Code (RCW 90.03.010) establishes prior appropriation as the dominant water law of the state. Explains the procedure for obtaining an appropriation permit. Applies to both underground and surface water. Appropriative rights

86. © Copyright 2010 Rockwell Publishing, Inc. Water Rights When Water Code was first passed in 1917, it provided that any existing riparian rights that were not put to a beneficial use would be lost. Later case law established 1932 as year unused riparian rights must be put to use or be forfeited. Landowners exercising riparian rights and putting water to beneficial use retained rights. Disappearance of riparian rights

87. © Copyright 2010 Rockwell Publishing, Inc. Water Rights In 1967, new provision in Water Act required all claims to water rights not already certified by the state be recorded by July of 1974. Any riparian rights (rights not granted under permit system) had to be recorded. Water rights not claimed were deemed relinquished. Disappearance of riparian rights

88. © Copyright 2010 Rockwell Publishing, Inc. Water Rights As a result of rule: Unless a water right was recorded before 1974 deadline or permit has been granted, the only rights a property owner has to water bordering his property are rights that do not diminish the quantity of water. Includes boating, swimming, and other recreational or aesthetic uses. Additional water rights may only be acquired through compliance with permit system. Disappearance of riparian rights

89. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Whether or not body of water is navigable is significant because it affects ownership of lake beds, riverbeds, and beaches. Navigable waters: A body of water that is “capable of being used practically for the carriage of commerce” (Washington Supreme Court). Navigable waters

90. © Copyright 2010 Rockwell Publishing, Inc. Water Rights All navigable waterways in the United States are owned and controlled by federal or state government. When land borders on ocean, sea, or navigable lake or river, property owner owns only land above mean high water mark. Land below high water mark and all lake or river beds of navigable waters are owned by government. Navigable waters

91. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Public easement for right-of-way on all navigable waters. Public has right to: use waterways for transportation, and make reasonable use of surface (swimming and boating, etc.). Navigable waters

92. © Copyright 2010 Rockwell Publishing, Inc. Water Rights Landowner who owns property bordering navigable waters may apply for permit allowing him to use a certain specified amount of water for designated beneficial purpose. Navigable waters

93. © Copyright 2010 Rockwell Publishing, Inc. Water Rights If small lake is completely within boundaries of one landowner’s property, landowner owns lake bed. Non-navigable waters

94. © Copyright 2010 Rockwell Publishing, Inc. Water Rights When non-navigable lake or stream is bordered by several different landowners, different rule applies. Ownership divided by tracing lines from each property boundary to center of lake or stream. Each owner has:  title to parcel of lake bed or stream bed adjoining his land, and  riparian right to reasonable use of entire surface for swimming, boating, etc. Non-navigable waters

95. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Landowner generally owns all minerals located in or under her property. Minerals considered real property until extracted, then become personal property. Rights can be sold separately from actual land. Horizontal division: Right to own and use surface property is divided from ownership of or rights to subsurface minerals. Mineral rights

96. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Four main methods of dividing mineral rights: mineral deed, mineral reservation, mineral lease, and mineral rights option. Mineral rights

97. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Mineral deed transfers all rights to minerals. Also grants rights necessary to conduct mining operations to obtain minerals.  Includes rights of access, development, processing, and transportation. Mineral rights

98. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Mineral reservation is similar to mineral deed, except that: owner sells or transfers surface property, but retains the mineral rights for himself. Mineral rights

99. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Under mineral lease, lessee is: given right to mine, and has title to minerals obtained, but lessor retains a future right in minerals. Property owner usually compensated by royalty payments. Mineral rights

100. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Mineral rights option grants right to explore for the presence of minerals. After exercising this option, mining company then decides whether or not to lease or purchase mineral rights as stated in option. Mineral rights

101. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances A landowner has right to the natural support of the land provided by surrounding land. Two kinds of support rights: lateral support, and subjacent support. Support rights

102. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Lateral support: The right to support from adjacent land. Applies not only to land, but also to improvements, so long as added weight of improvements is not cause of problem. Support rights

103. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Subjacent support: The right to support from the underlying earth. Right is significant when property is divided horizontally and rights to underlying minerals or oil and gas are transferred. Underlying owner may be liable for damage to surface property caused by excavations. Support rights

104. © Copyright 2010 Rockwell Publishing, Inc. Appurtenances Washington follows the non-ownership theory. Underground oil and gas are not subject to ownership, because of migratory nature. Property owner cannot actually own oil or gas until it is pumped to surface, where it becomes personal property. Oil and gas rights

105. © Copyright 2010 Rockwell Publishing, Inc. Oil and Gas Rights Once oil or gas is pumped to the surface, it is governed by the rule of capture. Rule of capture: A legal rule that grants a landowner the right to all oil or gas produced from wells on his land, even if the oil or gas migrated from underneath land belonging to someone else. Rule stimulates oil and gas production. Rule of capture

106. Summary © Copyright 2010 Rockwell Publishing, Inc. Appurtenances  Appurtenance  Inverted pyramid  Riparian rights  Appropriative rights  Navigable waters  Horizontal division  Lateral support  Subjacent support  Rule of capture