Paragraph 3(1) provides that paragraph 1 does not have the effect of reserving Crown property.  Crown property is:
This will enable the Scottish Parliament, for example, to apply its planning legislation to Crown property, subject of course to any provisions in other reservations.  It will also enable the Scottish Parliament, when legislating to create a new harbour or port, to extinguish any public rights over the foreshore or seabed which might be affected.
Paragraph 3(2) provides that paragraph 1 does not reserve the position of the Crown as ultimate superior of all feudal land in Scotland or the superiorities owned by the Prince and Steward of Scotland.  This provision is required because it is not clear whether such property can be said to belong to the Crown “in right of the Crown”.  It enables the Scottish Parliament to abolish the feudal system of land tenure, as in the Abolition of Feudal Tenure etc. (Scotland) Act 2000.
Paragraph 3(3) qualifies paragraph 3(1) by providing that it does not affect the reservation by paragraph 1 of:
TABLE OF RESERVED MATTERS Part I: General Reservations Detail of Provisions Paragraph 3: Crown Property