Also known as: improvements
Written by attorneys · grounded in primary & secondary sources — see below
A physical addition or structure erected on land that enhances its value or utility. Such additions include buildings, fixtures, and other permanent changes that become part of the real estate rather than remaining separate chattels.
Select any source to read its text and confirm it supports the definition.
Ibrahim contracts to buy land with a warehouse from Indigo Textiles. Before closing a fire destroys the warehouse. Under the majority rule the risk of loss shifted to Ibrahim at contract formation so he must still pay the full price and cannot rescind.
Imran borrows from Ideal Solutions to buy vacant land and immediately build a factory on it. The lender records a mortgage covering both the purchase price and the construction costs. The mortgage qualifies as a purchase money mortgage entitled to priority.
Idris wrongfully takes Ines's antique car and installs a new engine and custom body panels. When Ines sues for conversion she may recover the car's original value plus the additional value created by Idris's improvements even though he acted in bad faith.
Iain grants Integrity Partners an easement to run a pipeline across his land and later grants Ira an easement to build a private road over the same strip. Integrity Partners must repair and maintain the road surface to the extent it uses the improvement.
Icarus Aviation leases a hangar from Iain. The lease requires the tenant to maintain the premises and return them in good condition. A fire destroys the hangar. Absent express language requiring rebuilding Icarus has no duty to reconstruct the improvement.
Indigo Textiles sells lumber and drywall to a contractor who incorporates the materials into a new office building. A lender holding a security interest in the goods cannot enforce it against the materials once they become part of the improvement on land.
Under the majority rule risk passes to the buyer at contract formation. The buyer therefore bears the loss if improvements are destroyed before closing and cannot rescind or demand a price reduction.
Supporting sources
Yes. A mortgage qualifies as a purchase money mortgage to the extent loan proceeds are used to construct improvements on the real estate when the mortgage is given in the same transaction in which title is acquired.
…after considering the relationship of the designated property “to the master plan, the zoning resolution, projected public improvements and any plans for the renewal of the area involved,” § 207-2.0 (g) (1), may modify or disapprove the designation, and the owner may seek judicial review of the final designation decision.…
…before the Senate Committee on Governmental Affairs, 102d Cong., 2d Sess. (1992). School Dropout Prevention and Basic Skills Improvement Act of 1990, Pub. L. 101-600, § 2(a)(2), 104 Stat. 3042. Excellence in Mathematics, Science and Engineering Education Act of 1990, 104 Stat. 2883, 20 U. S. C. § 5301(a)(5) (1988 ed., Supp.…
…of adults confined in correctional facilities may be disapproved by resolution of either House). "34. Federal Trade Commission
…— e.g., 18 months — the nuisance be abated by improved methods, there would be no assurance that any significant technical
…See also, e.g., Vaden v. Discover Bank , 556 U. S. , (2009) (slip op., at 14, n. 9) (“The FAA is not a federal court ‘improvement project’ ”). The majority’s opinion thus represents a sharp departure from our prior jurisprudence. I would adhere to that jurisprudence and would find the California rule of state law…
Supporting sources
The owner may recover the additional value created by the converter's improvements even when the converter acted in bad faith.
Supporting sources
The beneficiary of the easement must repair and maintain the portions of the servient estate and the improvements under its control to prevent unreasonable interference or third-party liability.
Supporting sources
No. A covenant to maintain or surrender premises in good condition is not construed to require rebuilding after casualty destruction unless the lease expressly imposes that obligation.
Supporting sources
No. Article 9 does not create a security interest in ordinary building materials that have been incorporated into an improvement on land.
Supporting sources