National Real Estate Practice Exam

What does accretion refer to in real estate terms?

1. Physical loss of land

2. Legal assessment of land value

3. Physical addition to land by natural forces

4. Transfer of land ownership

The correct answer is: Physical addition to land by natural forces

Accretion in real estate refers to the process by which land is physically added to a property through natural forces, such as the accumulation of sediment by water flow or the gradual deposit of soil from rivers or other bodies of water. This process can increase the size of a property over time and can be significant in areas where waterways or coastal environments influence land development. Understanding accretion is important because it also ties into legal concepts regarding land ownership and property rights. For property owners, any land gained through accretion typically becomes part of their property. This is significant because it can impact property boundaries, land valuation, and development possibilities. In contrast, the other options relate to different concepts in real estate: the physical loss of land is referred to as erosion, a legal assessment of land value pertains to appraisal methods, and transfer of land ownership involves processes like conveyance or deed transfer, which are distinct from the natural process of accretion.