Accretion in Real Estate: The Effect of Steady Land Extension

Accretion is a natural process that is highly relevant to real estate, particularly for properties located near bodies of water. This article will delve into what accretion in real estate is, outline the basic differences between accretion, avulsion, and reliction, and show how accretion affects property ownership, legal boundaries, and property value.

Let’s dive into this interesting phenomenon and see how it will affect the real estate transaction.

What is Accretion in Real Estate?

Accretion is the gradual formation of land that becomes part of a property due to natural deposits of soil, sand, or sediment. These are usually brought about by bodies of water, such as rivers, lakes, or oceans. In time, these deposits gradually push outwards to extend the area of the land, thus increasing the size of the property. Essentially, while this process is gradual, this may bring substantial changes in property boundaries and ownership rights.

Accretion, in simpler terms, might be defined as nature’s way of expanding a tract of land. Imagine, for example, that a landowner owns property bordering a river and finds out gradually over the years that the river deposits soil on the land’s face, gradually increasing it in size. Such can greatly impact the value of the property and its boundaries.

Examples of Accretion

Picture a family-owned estate sitting near the edge of a riverbank. As time passes, the river naturally deposits layers of soil and sediment along the edge of that property. By this gradual but constant addition, the land grows by a few square feet; this increases the family’s wealth, since the value of the place appreciates because new space is made available for use.

Another example could be coastal properties, whereby the currents in the ocean carry sediment onto the shore, causing the land to build up gradually and continuously. This process can be seen quite often along waterways and, over time, has the potential to positively increase their value.

Artificial Accretion

The process of natural accretion takes place slowly with the working of nature. On the contrary, artificial accretion requires human action to intervene in the process. This happens when land is intentionally added to a property, like dredging or making levees to create more land from a waterbody.

A fitting example is that of urban waterfront developments, where artificial accretion is used to create more land upon which to build houses, business premises, or recreational facilities. Such manufactured advancements may increase the value of a property and provide further space that is useful, but often also involves complex legal issues. 

Quite often, this results in the new land being considered the property of whoever started the landmass expansion, thereby creating the possibility of legal conflicts between different landowners adjacent to one another.

Accretion vs. Avulsion vs. Reliction

While accretion refers to the gradual addition of land, it’s important to understand two other natural processes: avulsion and reliction.

• Avulsion occurs when land is rapidly and forcefully removed from a property due to natural events such as flooding, earthquakes, or storms. Unlike accretion, avulsion is a sudden and sometimes destructive event that leads to the loss of land.
  For example, if a river rapidly changes course after a flood and takes part of a property with it, that would be considered avulsion. Unlike accretion, avulsion does not automatically grant the new land to the adjacent property owner.
• Reliction is the process by which land becomes exposed due to the permanent recession of water from a shoreline. When a body of water, like a lake or river, recedes over time, the land that was once submerged may become part of the adjacent property.
  For instance, if a lake dries up due to drought, revealing more land around its former shoreline, the property owners who border the lake may claim the newly exposed land through reliction.

Both reliction and accretion result in an increase in property size, but the processes are distinct: accretion happens due to the buildup of sediment, while reliction occurs because water recedes.

Adding Land vs. Removing Land

While accretion makes land bigger, property owners should likewise be informed about erosion, which does the opposite. Erosion in general refers to the gradual disappearance of land due to water, wind, or any other natural causes. Over time, erosion could make a property smaller, lowering its value and usefulness.

Erosion is a huge concern for properties along bodies of water, such as rivers, lakes, and oceans, since they have the potential to slowly remove the land. Owners of these properties should consider erosion when examining the long-term value of waterfront homes.

Riparian Rights and Accretion

Riparian rights are legal rights that apply to property owners with land adjacent to a water course, such as a river, lake, or stream. These rights typically extend the use of water to property owners in reasonable ways, including but not limited to watering plants, fishing, or accessing.

Accretion plays an important role in land ownership when it comes to riparian rights. As land builds up along a riverbank or shoreline due to the natural flow of water, new land is usually formed and, by law, belongs to the property owner next to it. This just goes to prove that property lines are not always set in stone and change as accretion changes the land.

Property owners need to understand their riparian rights with regard to accretion. These are the rights that show how much new land they can own, which forms naturally by the edge of the water. In addition, there is also the potential for change by local laws, and keeping up with federal and state regulations regarding these riparian rights will be very important.

Effects of Accretion and Erosion on Property

Accretion and erosion are also related to real estate: more precisely, property value and opportunities for development. Properties near water that are accreting (gaining land) may increase the value by a significant amount due to the new addition of land. The new land could provide room for construction, leisure, or even agriculture.

Erosion can make property smaller, which can lower its value and usefulness. Property owners and developers should think about both accretion and erosion when looking at waterfront properties and get ready for the possible changes these processes might cause.

Aside from property value, acquiring land may also affect property taxes as more land could mean higher tax bills. Similarly, insurance needs might change with the increase or decrease in the area of land due to natural causes.

Summing-up

Accretion in real estate is a natural phenomenon that can have a lasting impact on property ownership, value, and legal boundaries. Whether it’s the slow addition of land through natural forces or artificial accretion caused by human intervention, understanding these processes is crucial for property owners and real estate professionals alike. 

For those studying for their real estate exams, mastering the concepts of accretion, alluvion, avulsion, and reliction is essential. Lexawise‘s real estate exam prep offers comprehensive materials to help you confidently understand these terms and pass your exam. Reinforce these real estate concepts with our expertly crafted flashcards, an essential tool for any aspiring real estate professional.