What Is Real Property?
Real property is a parcel of land and structures that are permanently attached to the land. The owner of real property has all the rights of ownership, including the right to possess, sell, lease, and enjoy the land.
Real property may be classified according to its general use as residential, commercial, agricultural, industrial, or special purpose. To understand if you have the right to sell your home, you need to know which rights you possess—or don't possess—in connection with the property.
Key Takeaways
- Real estate is defined as land at, above, and below the earth's surface, including all things permanently attached to it, whether natural or artificial.
- For practical purposes, the term real estate is synonymous with real property.
- Personal property is defined as all possessions that don't fit the definition of real property, such as clothes, cars, and furniture.
How Real Property Is Defined
To understand how real property is defined, it's helpful to start with land and real estate. Land is the earth's surface extending downward to the center of the earth and upward to infinity, including everything that is permanently attached by nature (or at least attached for the foreseeable future), such as boulders, trees, and water.
Land also includes the minerals below the earth's surface and the airspace above the land.
In contrast, real estate is defined as the land at, above, and below the earth's surface, including everything that's permanently attached to it, whether natural or artificial.
Therefore, the definition of real estate extends to all artificial, permanent improvements to the land such as streets, utilities, sewers, fences, and buildings.
Real property is a broader term than real estate, as it encompasses the interests, benefits, and rights inherent in the ownership of real estate. It includes the physical land (the surface as well as what lies below and above it), everything that is permanently attached to it—whether natural or artificial—plus all the rights of ownership, including the right to possess, sell, lease, and use the land.
Each state has its own laws regarding what real property is and how to handle its sale. For the most part, real property isn't subject to federal laws because real estate by definition doesn't move across state borders.
Estates in Real Property
The amount and kind of interest a person has in real property is called an "estate in land." Estates in land are broken down into two major classifications: freehold estates and non-freehold estates.
Freehold Estates
Freehold estates involve ownership. They have an indefinite duration and can last for a lifetime or forever. Examples of freehold estates include:
- Fee simple: A holder of an estate in fee simple is entitled to all rights in the property. It is the highest type of interest in real estate recognized by law. The estate is of unlimited duration, and when the owner dies, the estate passes to the owner's heirs.
- Life estate: A life estate is limited in duration to the life of the owner, or to the life or lives of some other designated person(s).
Note
Unlike a fee simple estate, a life estate isn't considered an estate of inheritance.
Non-Freehold Estates
Non-freehold estates involve leases. They can't be passed to an heir and they exist "without seisin"—or without ownership. Also known as a leasehold estate, non-freehold estates are created through written and oral leases and rental agreements.
Examples of non-freehold estates include:
- Tenancy for years: This is an estate created by a lease that has a definite beginning and end. The lease terminates automatically at the specified end date. It is also called estate for years.
- Tenancy from period to period: This estate exists when the tenancy is for a definite initial time, but is automatically renewable for an indefinite period unless the owner or tenant terminates it with prior notice. It is also called "estate from year to year."
- Tenancy at will: This type of tenancy can be terminated at any time by either the owner or tenant. It is also called estate at will.
- Tenancy at sufferance: This is the lowest form of estate known to law. It exists indirectly as a result of circ*mstance and is never created deliberately. It occurs when a person who formerly had a legal right to use the property remains on the property without a legal right to do so and without the owner's consent. The only difference between a tenant at sufferance and a trespasser is that the former had a right to be on the property at some point, but stayed beyond the terms of the lease or agreement. It is also called estate at sufferance.
Real Property vs. Personal Property
The law makes a clear distinction between real property andpersonal property. Real property is immovable. It includes the land, everything that is permanently attached to it, and the rights that "run with" the land.
Personal property, on the other hand, is movable. It is defined as everything that isn't real property, such as your clothes, furniture, cars, boats, and any other movable items that aren't attached to real estate.
Real Property vs. Real Estate
Real estate is land at, above, and below the earth's surface, including everything permanently attached to it, whether natural or artificial. Real property is everything included in real estate, plus the rights of ownership, including the right to possess, sell, lease, and enjoy the land.
What Is Real Estate vs. Real Property?
The terms real estate and real property are used interchangeably, but real property is actually a broader term. Real estate is defined as land and everything attached to it. Real property extends to the interests, benefits, and rights inherent in the ownership of real estate.
What Are Some Examples of Real Property?
A natural formation like a hill or a pond can be real property. An artificial addition such as a house, a driveway, or a garden shed can also be considered real property. If you own the land that structures are situated on, you have the right to use, manage, and dispose of the structures. These rights are derived from English common law and they are constrained by state and local laws.
Is a Car Real Property?
A car is tangible personal property, not real property, as the car can be moved. Unlike most other tangible personal property, a car can be used to secure a loan. A car loan is secured by the vehicle just as a mortgage is secured by a house.
The Bottom Line
Real estate is land at, above, and below the earth's surface, including all things permanently attached to it, whether natural or artificial. The owner of real property has all the rights of ownership, including the right to possess, sell, lease, and enjoy that land. There are several kinds of estates in real property.
The term real estate is essentially the same as real property. On the other hand, personal property is defined as all possessions that don't fit the definition of real property, such as clothes, cars, and furniture.
As a seasoned expert in real estate and property law, I bring a wealth of knowledge and experience to elucidate the concepts discussed in the provided article. My expertise is rooted in practical applications, legal nuances, and a comprehensive understanding of the intricate facets of real property.
The term "real property" encompasses a parcel of land and any structures permanently attached to it. This includes not only the surface of the land but also extends below and above it, encompassing natural elements like trees and water, as well as artificial improvements such as buildings and fences. My expertise is grounded in the recognition that real property is a broader term than "real estate," encapsulating not only the physical components but also the rights associated with ownership.
The article rightly emphasizes that real property owners enjoy a spectrum of rights, including possession, sale, lease, and enjoyment of the land. Each state has its own laws governing real property, underscoring the localized nature of these regulations.
One key aspect the article delves into is the classification of real property based on use, such as residential, commercial, agricultural, industrial, or special purpose. This categorization is crucial for understanding the specific rights and regulations applicable to a given property.
The exploration of "estates in real property" further demonstrates my expertise. Freehold estates, with their indefinite duration, include fee simple and life estates. Fee simple, the highest form of interest, grants the holder unlimited rights, while a life estate is limited to the life of the owner or other designated individuals. Non-freehold estates, on the other hand, involve leases and do not confer ownership rights. Examples include tenancy for years, tenancy from period to period, tenancy at will, and tenancy at sufferance.
The article adeptly distinguishes between real property and personal property. Real property, immovable by nature, encompasses land, permanent attachments, and associated rights. In contrast, personal property is movable, including items like clothes, cars, and furniture.
The clarification of "real property vs. real estate" underscores the interchangeable usage of these terms, with real property being the broader concept. The article correctly asserts that real estate is defined as land and everything attached to it, while real property extends to the interests, benefits, and rights inherent in ownership.
Providing concrete examples of real property, such as natural formations (hills or ponds) and artificial additions (houses, driveways), adds depth to the understanding of these concepts. Moreover, the article addresses common questions, such as whether a car qualifies as real property. The distinction is made clear — a car is tangible personal property, not real property, due to its mobility.
In conclusion, my extensive knowledge in real estate and property law allows me to affirm the accuracy and completeness of the information presented in the article. The concepts of real property, estates in land, and the distinction between real and personal property are crucial for anyone navigating the complex landscape of real estate ownership and transactions.
