Understanding Steering in Real Estate: Definition, Examples, and Prevention

What Is Steering In Real Estate

If you are looking to buy a property, navigating the world of real estate can be overwhelming, especially when faced with the many specialized terms used in the industry. One such term that you may have come across is “steering.” This article will explore what steering means, why it is illegal, and what you can do if you encounter it.

What is “Steering” in Real Estate?

Steering is a practice in which a real estate agent influences a property buyer to purchase a particular property based on their unconscious prejudices. This practice is illegal because it goes against the Fair Housing Act, which prohibits discrimination based on race, color, religion, national origin, sex, disability, and familial status.

For example, if a real estate agent withholds information about properties that meet a potential buyer’s criteria based on their prejudices, they are engaging in steering. Similarly, if a real estate agent shows properties only in certain neighborhoods based on the buyer’s race or ethnicity, they are guilty of steering.

It’s worth noting that some steering can occur due to miscommunication or vagueness. For instance, if a buyer requests properties in a “safe” or “good” area without specifying their criteria, the real estate agent may interpret these terms based on their prejudices, which could lead to steering.

What Should a Buyer Do if They Notice Steering in Real Estate?

If you suspect that a real estate agent is steering you, it’s essential to report it. You should immediately drop the agent and find another agent who does not engage in discriminatory practices. You can also report the agent to their brokerage or other relevant authorities to prevent this behavior from continuing.

What Can Real Estate Agents Do to Avoid Steering in Real Estate?

Real estate agents can take several measures to avoid steering. Firstly, they must take the time to evaluate every choice when looking through properties. When a potential buyer tells them to look at “nice” or “good” properties, they must consider their potential unconscious biases.

Real estate agents must be objective and show potential buyers properties that meet their criteria, regardless of their identity characteristics. If they are unsure or believe their biases may influence their decisions, they should communicate directly with the buyer to clarify their criteria.

For instance, if the buyers say they want to live in a “nice” neighborhood, the real estate agent should ask them to elaborate and clarify what they mean. They can also ask the buyers about their price points and any specific features they want in the property.

Frequently Asked Questions

What is Steering vs. Redlining?
Steering and redlining are both illegal, discriminatory practices under fair housing laws. Steering refers to influencing property buyers based on unconscious prejudices, while redlining is denying loans or insurance based on a person’s race, ethnicity, or other protected characteristic.

What are the Penalties for Steering?
Steering in real estate can result in civil fines, lawsuits, criminal charges, revocation of a real estate license, and damage to an agent’s reputation. The penalties can be severe, so real estate agents must avoid discriminatory practices like steering.

What is Puffery in Real Estate?
Puffery is a legal term that refers to the act of exaggerating the value or qualities of a property to persuade someone to buy it. It is not considered a deceptive practice as long as the claims made are not false or misleading. For instance, a real estate agent may describe a property as “gorgeous” or “amazing,” even if it’s not objectively true.

How can I protect myself from steering?
The best way to protect yourself from steering is to educate yourself about fair housing laws and the signs of discrimination. If you feel that a real estate agent is engaging in steering, you should report them immediately and find another agent. When communicating with real estate agents, you can also research the neighborhoods you are interested in and be clear about your criteria.

Final Thoughts

Steering is a discriminatory practice that violates fair housing laws. It occurs when a real estate agent influences a property buyer based on their unconscious prejudices. As a buyer, you must educate yourself about the signs of discrimination and report any instances of steering. Real estate agents can avoid steering by being objective, communicating clearly with potential buyers, and taking the time to evaluate every choice when looking through properties. These and other critically-important topics are discussed in Chamberlin Real Estate School’s Real Estate Salesperson Pre-license Course.

Part-Time Real Estate Agent: Can You Make it Work?

If you’re looking for a way to make some extra income on the side, becoming a part-time real estate agent might be an appealing option. But can you really make it work while still balancing other commitments and responsibilities? The answer is yes, you can! In this article, we’ll explore how to get started in real estate part-time, the benefits and challenges of this approach, and tips for success.

Getting Started as a Part-Time Real Estate Agent

Suppose you’re considering becoming a part-time real estate agent. In that case, there are several factors to keep in mind as you get started:

  1. Choosing a Type of Real Estate: There are different types of real estate that agents can specialize in, including residential, commercial, rural, and industrial. You can decide which type of real estate you want to focus on based on your interests and goals.
  1. Getting Licensed: To become a real estate agent, you must get licensed by the State of California. Information on license requirements is available here.
  1. Developing a Business Plan: It’s a good idea to create a business plan that outlines your goals, target market, marketing strategy, budget, and the timeline for achieving success.

Benefits of Being a Part-Time Real Estate Agent

Working in real estate part-time offers several benefits, including:

  • Flexible Schedule: As a part-time agent, you can work around your existing commitments and responsibilities, giving you more freedom and flexibility.
  • Opportunity for Growth: You can start small and scale up your business as you gain experience and build a client base. This allows you to explore different strategies and learn which methods work best for you.
  • More Time for Training: Working part-time gives you extra time to invest in additional training and education, helping you stay up-to-date with industry trends and become a more successful agent.

Challenges of Being a Part-Time Real Estate Agent

Of course, some challenges come with working in real estate part-time, such as:

Limited Time: Working part-time means you have limited time to dedicate to your business, making it challenging to build a solid client base or stay on top of marketing efforts.

Competition: The real estate industry is highly competitive, and working part-time may put you at a disadvantage compared to full-time agents. You’ll need to work hard to stand out and establish yourself as an expert.

Less Access to Resources: With a limited budget and time, you may have less access to resources like marketing materials, technology, and essential tools for success in the industry.

Less Opportunity for Networking: As a part-time agent, you may find it challenging to attend networking events or participate in professional development opportunities that can help you grow your business.

Tips for Success as a Part-Time Real Estate Agent

If you want to succeed as a part-time real estate agent, there are several strategies you can use:

  1. Set SMART Goals: Set goals for yourself that are Specific, Measurable, Attainable, Relevant, and Timely (SMART) so you can track your progress.
  1. Be Organized: Keep your paperwork and other documents organized. Use a calendar or task list system to manage your limited time effectively.
  1. Focus on Quality: Provide quality service and build relationships with your clients to stand out from the competition and build a strong reputation in the industry.
  1. Invest in Technology: Use apps and software to streamline your processes and save time, giving you a competitive edge and making you more efficient.
  1. Be Responsive: Respond to clients promptly to show that you are professional and dedicated to providing excellent customer service, even though you’re not available 24/7.

Earning Potential for Part-Time Real Estate Agents

The amount you can earn as a part-time real estate agent varies depending on several factors, including the type of property you’re dealing with, the number of clients you have, and the commission rate you can negotiate. In California, the average commission rate for real estate agents is around 5-6% (divided between the buyer’s and seller’s agents) You can increase your income by negotiating higher rates and specializing in certain types of properties, such as commercial or luxury homes.

Final Thoughts

Real estate can be a great way to make extra income part-time, but it’s crucial to approach it with the right mindset and strategies for success. By choosing the right type of real estate, getting licensed, developing a business plan, and following the tips outlined above, you can maximize your potential as a part-time real estate agent and build a successful career in this exciting industry. In addition, remember to stay organized, focus on quality service, invest in technology, and be responsive to your clients’ needs to stand out from the competition and build a strong reputation as a trusted and successful real estate agent.

What Are the Qualities of a Good Real Estate Agent?

Considering a career as a real estate agent? It’s not just about selling houses. While market knowledge is crucial, other skills and qualities are equally important. Your personality and communication skills can significantly impact your success in this industry. Let’s explore the top qualities of a successful real estate agent.

  1. Interest in Property
    A good real estate agent must have a genuine interest in properties. When showing a house, enthusiasm for its architecture and possibilities is crucial. Even for run-down homes, help clients envision renovation potential. You’re selling a lifestyle, not just a property. Clients want to know what living in that house will feel like, and your passion can make a significant difference.
  2. Self-Motivation
    As a real estate agent, you’re essentially running your own business. You get a percentage of the sales you make, so your income is directly tied to your performance. This means that you need to be self-motivated to succeed. The competition in this industry can be cutthroat, especially when dealing with high-end properties. However, with the drive to push yourself, you’ll likely be able to make a name for yourself.
  3. Communication Skills
    Excellent communication skills are vital for any real estate agent. You’ll interact with clients, other agents, and potential leads. Whether in person, on the phone, or by email, confidence and professionalism are key. If you’re shy or lack confidence, work on overcoming these barriers. People prefer working with someone they feel comfortable with and who can communicate their expertise effectively.
  4. Great Personality
    Real estate is a people-oriented business, making a great personality essential. You’ll interact with diverse clients, so a personality that works well with others is critical. You should inspire confidence in your abilities and be someone clients enjoy working with. Being friendly, approachable, and warm can make clients comfortable and increase the chances of a successful transaction. Let your upbeat personality be your unique selling point.

  1. Natural Problem Solver
    To be successful in real estate, you must be a natural problem solver. Unexpected issues can arise, and you need to address them calmly and effectively. Whether marketing a home that’s not selling or resolving a legal issue, your problem-solving skills will demonstrate to clients that you’re competent and reliable.
  2. Open to Negotiation
    Negotiation is a crucial part of being a real estate agent. You’ll need to negotiate commission rates, the listing price of a property, and the selling price. It’s essential to hone your negotiation skills, or you risk underselling a property and not earning the commission you deserve. Over time, you’ll become more confident in your negotiation abilities. Still, it’s essential to focus on this skill from the start.
  3. Networking Abilities
    Networking is essential in the real estate industry. Your connections can be powerful tools for generating leads and closing deals. You’ll need to actively network with people in the industry, attend events, and build relationships. It’s essential to listen to others rather than just talking about yourself, and to follow up with people to maintain connections. Over time, your networking skills will improve, and your reputation will grow as a successful agent.
  4. High Standards
    A successful real estate agent must have high standards of integrity and morals. Clients often use their life savings to buy a property, so trust is paramount. Your reputation relies on your ability to act with integrity and prioritize clients’ needs. Selling a home is a significant decision; always prioritize clients’ interests and act ethically.

 

Final Thoughts

Becoming a successful real estate agent requires more than just knowledge of the housing market. You need a combination of skills and qualities, including interest in property, self-motivation, communication skills, a great personality, problem-solving abilities, negotiation skills, networking abilities, and high standards. If you’re considering a career in real estate, focus on developing these skills and qualities to stand out from the competition. It may take time and effort, but the rewards of a successful career in real estate can be significant.

Is the California Real Estate Exam Hard? Everything You Need to Know About the Exam

If you’re considering a career in real estate in California, you may be wondering how difficult the real estate exam is. The exam is undoubtedly challenging and demands significant practice and dedication to pass. Here, we’ll cover everything you need to know about the California real estate exam, including its difficulty and the best preparation methods.

How Hard is the California Real Estate Exam?

The difficulty of the real estate exam varies by state, but the California real estate exam is known to be one of the most difficult. The pass rate for the California real estate exam in the last two years has been below 50%, indicating its high level of competitiveness and difficulty. However, this is not meant to be discouraging. The exam is designed to ensure that only those who are fully prepared and knowledgeable about real estate can become licensed professionals.

What is the Hardest Part of the Exam?

The area of the exam that is considered the most challenging varies from person to person, but many people find that the Practice of Real Estate and Disclosures section is the most difficult. This section takes up 25% of the exam and has between 37-38 questions to answer. Devoting ample time to this section is key to mastering fair housing laws and truth in advertising. Scoring well in this section can put you in an excellent position going forward in the exam.

How Many Questions are on the Exam?

The California real estate salesperson exam consists of 150 questions that you must answer in 3 hours. These questions are split up into seven different sections, each covering different topics and scenarios that you will have learned in your time studying real estate and practicing online courses. The California broker exam has 200 questions and you are allowed 4 hours to complete.

Here’s how the questions are split up on the exam:

  1. The Practice of Real Estate and Disclosures – 25% of the exam (37-38 questions)
  2. Laws of Agency and Fiduciary Duty – 17% of the exam (25-26 questions)
  3. Property Ownership and Land Use Controls and Regulations – 15% of the exam (22-23 questions)
  4. Property Valuation and Financial Analysis – 14% of the exam (21 questions)
  5. Contracts – 12% of the exam (18 questions)
  6. Financing – 9% of the exam (13-14 questions)
  7. Transfer of Property – 8% of the exam (12 questions)

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How to Prepare for the California Real Estate Exam

Preparing for the California real estate exam requires hard work and dedication, but there are many resources available to help you succeed. Here are some of the best ways to prepare for the exam:

  1. Utilize Practice Questions: Our online California Exam Prep has over 1,000 questions, which can be sorted by subject category to create your own exam. It’s graded automatically, providing explained answers with links to an extensive real estate glossary.
  2. Repeat the Online Tests: Taking an online test once isn’t enough. Take the tests several times to get a good idea of what you’ll be asked and how the questions might be worded. This will help you prepare for the actual exam.
  3. Save Questions You Don’t Know for Later: If you come across a question you’re struggling with, don’t guess and forget about it. Leave it for the moment and come back to it once you get through the questions that you’re more confident about. You may find that the answers to these questions appear in later questions.
  4. Remember Vocabulary: While math is important, it’s also important to remember the vocabulary used in the real estate profession. This includes local state laws, types of agencies, discrimination laws, and details of the relationship between the broker and agent.
  5. Attend a Crash Course: Procrastination is something that affects all of us. Enrolling in a real estate crash course the weekend before your test will keep the content fresh in your mind. Studying with a group of people will help push and motivate you to keep grinding through the last days before taking the state exam.
  6. Develop a Study Plan: It’s important to have a consistent study plan leading up to the exam. Set aside dedicated study time each day and stick to a schedule. This will help you stay on track and ensure you cover all the necessary material.
  7. Get Support: It’s important to have support during the exam preparation process. Whether it’s from friends, family, or a study group, having a support system can help keep you motivated and accountable. Joining a study group can also provide the opportunity to learn from others and discuss difficult topics.
  8. Take Care of Yourself: Don’t neglect self-care during the exam preparation process. Make sure to get enough sleep, eat well, and exercise regularly. Taking care of yourself can help you stay focused and alert during the exam.

The Bottom Line

The California real estate exam is tough, but thousands of students from Chamberlin Real Estate School have successfully passed it. The exam is designed to ensure that only those who are fully prepared and knowledgeable about real estate can become licensed professionals. To prepare for the exam, repeat online tests, save questions you don’t know for later, remember vocabulary, utilize study guides and online courses, develop a study plan, get support, and take care of yourself. By following these tips and putting in the necessary hard work and dedication, you can pass the California real estate exam and become a licensed professional in the field. Your journey starts here!

How to Get a California Real Estate License

If you’re considering a career in real estate in California, you’ll need to obtain a California real estate license. This license allows you to legally sell and broker real estate transactions in the state of California. Here are the quick steps:

  1. Meet the eligibility requirements
  2. Complete the required pre-licensing education
  3. Apply for and pass the California Salesperson examination
  4. Complete the California real estate license application

We’ll guide you through the steps to obtain a California real estate license, covering the necessary actions, activities that require a license, potential challenges, and available resources to assist you.

Step 1: Meet the Eligibility Requirements

Before you can apply for a California real estate license, you need to meet several eligibility requirements. These requirements include:

  • Be at least 18 years old
  • Be a resident of California or follow the Out-of-State application process.
  • Complete three college-level courses in real estate, consisting of:
    • Real Estate Principles
    • Real Estate Practice
    • One elective course

Alternatively, you may have a degree in real estate from an accredited institution. Members of the California State Bar are statutorily exempt from the pre-license requirement.

Step 2: Complete the Required Pre-Licensing Education

To qualify for the California real estate license exam, you must complete 135 hours of pre-licensing education. This education is divided into three courses: Real Estate Principles (45 hours), Real Estate Practice (45 hours), and one additional course from a list of approved courses (45 hours). You can complete these courses entirely online through an approved provider, like Chamberlin Real Estate School. The DRE website has a portal to verify approved educators. 

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Step 3: Pass the California Real Estate Exam

Once you have completed your pre-licensing education, you must pass the California Real Estate Salesperson Exam. The exam will test your real estate knowledge and will require some focused study time. Familiarizing yourself with vocabulary terms and grasping key concepts will improve your chances of answering most questions correctly.  The examination covers general real estate principles and practices, with California-specific questions about state laws and regulations. You must pass the test with a score of at least 70%. Utilizing real estate exam prep quizzes and attending a real estate crash course will help your confidence before your test date.

Step 4: Apply for Your California Real Estate Salesperson License

Once you pass the exam, you can apply for your California Real Estate Salesperson License. Submit an application to the California Department of Real Estate (DRE) and pay the application fee. You’ll need to provide details about your pre-license education, exam results, and criminal history. Applying online through the DRE eLicensing portal is the simplest method.

Step 5: Find a Brokerage to Work For

To practice real estate legally in California, you must work under a licensed real estate broker. You can join a brokerage as an independent contractor or employee. Research various brokerages to find one that aligns with your career goals and values. Some brokerages offer extensive guidance and leads but may take a higher commission percentage compared to more hands-off brokerages.

What Activities Require a Real Estate License in California?

A real estate license is necessary for several activities related to real estate transactions in California, including

  1. Selling or leasing real estate properties: Anyone involved in selling or leasing properties in California must hold a valid real estate license.
  1. Listing properties for sale or lease: Listing properties for sale or lease on behalf of the owner or agent requires a real estate license, such as for an account manager at a property management company.
  1. Negotiating real estate transactions: Negotiating or offering to negotiate the purchase, sale, or lease of properties requires a real estate license.
  1. Providing advice or opinions on real estate transactions: Providing advice, opinions, or recommendations on real estate transactions for compensation requires a real estate license.
  1. Property management services: Managing properties, including collecting rent, arranging repairs and maintenance, and supervising tenants, requires a real estate license.

Potential Roadblocks to Getting Your License

While obtaining a real estate license in California can be straightforward, several obstacles may arise, including:

  • Failing the California Real Estate Salesperson Exam: The state exam can be challenging, and if you don’t pass with at least 70%, you’ll need to retake it.
  • Criminal History: A criminal record may lead to the denial of your license application. It’s crucial to disclose any criminal history honestly on your application.
  • Lack of Pre-Licensing Education: Without completing the necessary pre-licensing education, you won’t qualify for the California Real Estate Salesperson Exam.
  • Finding a Brokerage: Not all brokerages are the same, and finding one that matches your career goals and values may take time. The good news is they will all be interested in hiring you once you have your license!

Resources to Help You Get & Keep Your License

You are not in this alone! Switching careers or taking classes on the side while working may seem like a lot. The key is to take your time and complete each step as it comes. There are several resources available to help you along the way which include:

  • California Department of Real Estate (DRE): The DRE is the regulatory agency that oversees the real estate industry in California. Their website provides information about the licensing process, educational requirements, and exam details.
  • Approved Education Providers, like Chamberlin Real Estate School: Our experienced instructors are available to answer any questions you may have about getting a license, and our online courses are designed to prepare you to take and pass the state exam on the first try. Once you’ve obtained your license, we also offer required real estate license continuing education to help you stay up-to-date with the latest industry trends and regulations.
  • Exam Prep Courses: Our 1-Day California Real Estate Exam Crash Course is designed to help you ace your state exam. Led by an expert licensed instructor, this webinar includes key terminology, exam-taking hints, memorization aids, and a hot questions handout to ensure you’re fully prepared for the big day.
  • Professional Associations: Joining a professional association, such as the California Association of Realtors or the National Association of Realtors, can provide you with valuable networking opportunities and resources.

Where To Find Out More About Real Estate Licenses

The California Department of Real Estate (DRE) is the state agency responsible for regulating and enforcing real estate laws and regulations in California. The DRE oversees the licensing of real estate professionals, including salespersons, brokers, and appraisers. They also investigate complaints and take disciplinary action against licensees who violate real estate laws or engage in unethical conduct. In addition to their regulatory role, the DRE provides consumer resources, such as a database of licensees, publications on buying and selling real estate, and information on filing a complaint. The DRE is committed to promoting a fair and competitive real estate market in California and protecting consumers from fraudulent and deceptive practices.

Now You Are Ready!

Obtaining a California real estate license involves meeting the requirements, completing your education, passing the exam, and submitting a license application. While the process may seem confusing at first, remember that Chamberlin is always available by phone to help with any questions. Take action, remain persistent, and you can obtain your California real estate license and build a successful career in real estate!

Do You Need A Real Estate License To Flip Houses?

Do You Need A Real Estate License To Flip Houses

House flipping is a lucrative way to make money by purchasing properties needing repair, renovating, and selling them for a profit. However, the process is not without its complexities, and it’s common for people to wonder whether they need a real estate license to flip houses. While having a license to flip houses is not required, having one can be highly beneficial, as it provides a deeper understanding of the market, which can lead to more profitable deals.

What Is House Flipping?

House flipping involves buying a property that needs repairs or renovations, increasing its value, and selling it for a profit. This process starts with purchasing the property at a lower price, investing in repairs, decorations, modernizing, and remodeling, and then selling it for a profit. The aim is to cover the costs of the property and renovations while making a profit. For a more detailed guide on house flipping, numerous online resources are available.

Advantages Of Having A Real Estate License

Here are some of the benefits of having a real estate license when flipping houses:

  1. More Knowledgeable About Prices: Real estate training programs provide extensive information on property management, home appraisals, ownership, government regulations, contracts, financing, and the general process. This knowledge is invaluable when determining the right price for a property.
  1. Increased Familiarity With The Market: Familiarity with the market helps determine the best times to buy or sell and can aid in building wealth through real estate investments. Understanding the best locations, ideal property sizes, market trends, and buyer preferences leads to more informed purchasing decisions.
  1. May Be Able To Reduce Costs: A real estate license can help you avoid paying commissions on one side of a transaction or even receive a commission personally, reducing your costs. This can result in more significant profits when selling the property.
  1. More Access To Buyers: Generally, only licensed real estate agents have access to certain sites with property listings. Having a real estate license can give you access to these sites, allowing for more opportunities and the potential for more money.
  1. Networking Opportunities: Real estate agents have a wide range of contacts, including other agents, brokers, investors, contractors, tradespeople, inspectors, lawyers, and people of influence. A real estate license can give you access to this network, which can be advantageous.
  1. Flexible Working: Real estate agents typically need to adjust their schedules according to their clients’ availability. Nevertheless, as a general guideline, you have the freedom to set your own working hours. This means that pursuing a career in real estate can offer you greater flexibility in your work schedule, perhaps even for your own real estate investment ventures!
  2. Potentially Bigger Profits: The National Association of Realtors suggests that those with a real estate license earn larger profits on properties compared to those who do not have a license. Therefore, having a real estate license can help you learn more about the market and the industry and earn a more considerable profit margin.

Is Flipping Houses Hard?

Flipping houses is not necessarily hard, but it requires patience, time, and effort. It is important to note that you will not always profit from flipping houses. Understanding the potential for losses and how to deal with such situations is critical. This is when house flipping gets “hard.” Some people may find themselves out of their depth if they do not know how to handle these situations.

Where To Get A Real Estate License?

If you’re looking to become a licensed real estate agent, Chamberlin Real Estate School might be the perfect choice. Our courses are available online, making it convenient for anyone with a busy schedule or who lives far from in-person classes. You can study at your own pace, but you have the advantage of a licensed instructor, available to answer any questions you may have. Additionally, Chamberlin Real Estate School has been helping students for 70 years, which means they we have a wealth of experience and knowledge to draw on. We’re also based in Campbell, CA, which means you’ll receive support by people right here in California, who genuinely care about your success.

The Bottom Line

While a real estate license isn’t required to flip houses, it provides a significant advantage. A real estate license offers extensive market knowledge, reduces costs, and potentially increases profits. It also provides networking opportunities for valuable real estate contacts. However, remember that flipping houses carries risks, including potential losses. Therefore, understanding the market, industry, and risks involved is crucial before starting a house-flipping venture.

Obtaining a real estate license is an excellent place to start if you’re interested in pursuing a career in house flipping or real estate. A real estate license will give you the necessary knowledge and tools to succeed in the industry and open up opportunities for professional development and career advancement. In addition, with a real estate license, you can be confident that you’re making informed decisions and are equipped to handle any challenges that may arise along the way.

Whether you pursue a real estate license or not, success in flipping houses requires patience, diligence, and knowledge. By researching, being strategic in your investments, and leveraging the right resources, you can successfully flip houses and achieve your financial goals.

What Are Appurtenances In Real Estate?

What Are Appurtenances In Real Estate

As you delve deeper into the world of real estate, you’ll come across numerous terms that are specific to this field. One term that you’ll encounter frequently is “appurtenances.” While the concept might initially seem overwhelming, it is easy to understand. Moreover, it plays an essential role in property ownership and truthful advertising. This blog post will discuss appurtenances, their definition, and how they relate to the broader real estate profession.

What is the Definition of an Appurtenance?

Appurtenances are additions to a property that have become permanent, such as improvements or rights integrated into the property. These additions are included in the property transaction and are often considered a bonus when buying a house. They are part of the larger entity and cannot be temporary items or personal equipment.

According to the exact definition of appurtenance, they are “property rights or items that are permanent and are passed along with the sale of the property.” By categorizing parts of the property as appurtenances, real estate transactions become much easier since these additions do not have to be separated from the property itself, which can lead to additional paperwork and expenses.

History of Appurtenances in Real Estate

Appurtenances became a defined term in the profession of real estate after the Cohen v. Whitcomb case in 1919. A heated debate occurred about whether a hot water heater, which the tenant installed, would still be owned by them or if it was now part of the property at large. Ultimately, the court decided that the hot water heater, classified as a “repair” and “improvement” to the property, now became a permanent part of the property itself and was technically owned by the landlord.

Can Appurtenances Be Removed?

To classify something as an appurtenance, it must be fixed to the building and not easily removable or replaceable. If removing it would cause significant damage to the property, it is considered an appurtenance. The permanence of the addition is crucial, which is why the term can sometimes be ambiguous.

For example, fences are considered appurtenances because they are fixed to the land, and removing them would damage the soil. In contrast, a baby gate placed by the stairs that can be easily moved is not an appurtenance. Similarly, an antenna attached to a chimney is an appurtenance, as removing it would cause damage.

Examples Of Appurtenances

Common examples of additions and repairs to a home that would be classified as appurtenances include Examples Of Appurtenances

  • Driveways
  • Fences
  • In-ground Swimming Pools
  • Garages
  • Barns
  • Sheds
  • Cabinets
  • Septic Tanks
  • Ceiling Fans
  • Furnaces


An easy way to determine if something is or is not an appurtenance is to recognize whether it can be removed from where it has been placed and if the current owner is able to take this attachment with them when they move to another property. Anything attached via a plug or not built with the intention of being permanent is not considered an appurtenance, such as an above-ground pool designed to be temporary and can be moved without causing damage to the property.

What Is An Appurtenant Easement?

An appurtenant easement refers to someone lending a part of their attached real property to another person for a specific purpose. It is an agreement made between two people to allow an outsider to traverse across parts of their property to get to another destination.

Example: A property owner with a driveway may allow someone else to walk or drive through it to reach another facility. This can sometimes be done without any exchange of money, or the landowner may require a one-time fee for granting access.

Appurtenant easements can include the right to use shared driveways or common areas like parks or swimming pools in a housing community. These easements are typically recorded in the property deed and can impact the property’s value.

Why Are Appurtenances Important in Real Estate?

Appurtenances are crucial in real estate transactions since they can affect the property’s value, ownership, and transfer. When buying or selling a property, it’s essential to consider all the appurtenances attached to it and understand its classification. Failure to recognize an appurtenance can result in legal disputes or additional expenses.

Moreover, appurtenances can also affect the use and enjoyment of the property. For example, suppose an appurtenant easement allows someone to cross through the property at specific times. In that case, it can limit the owner’s privacy and restrict the use of the property.

Summary

Appurtenances are permanent additions to a property, such as improvements or rights that become part of the larger property entity. They cannot be temporary items or personal equipment. Appurtenances can impact the property’s value, ownership, and transfer, making it essential to consider them during real estate transactions. Understanding appurtenances and their classification is crucial for real estate agents, buyers, and sellers to ensure smooth and successful transactions.

Learn More About Appurtenances

Appurtenances are just one of hundreds of terms which you’ll master as you study for your real estate license. The pre-license course from Chamberlin Real Estate School presents terms in a way that makes them easy to understand and remember. Any time you have questions, whether about terminology or fundamental concepts in real estate, you’ll have a live instructor available to help you as you prepare to become a Real Estate Agent. Start your journey today!