What is Real Property
Real property consists of a piece of land and everything permanently affixed to it. The owner of real estate possesses all ownership rights, such as the right to own, sell, lease, and enjoy the land.
Real estate can be categorized based on its general purpose as residential, commercial, agricultural, industrial, or special purpose. To determine whether you have the right to sell your home, you must determine which property rights you possess or do not possess.
Real estate is defined as land at, above, and below the earth's surface, along with all permanent natural or artificial attachments.
For all practical purposes, real estate and real property are synonymous.
Personal property includes all possessions that do not qualify as real property, such as clothing, automobiles, and furniture.
Understanding Real Property
To comprehend the definition of real property, it is helpful to begin with land and real estate. Land is the earth's surface that extends downward to the earth's core and upward to infinity, including everything permanently attached by nature (or at least attached for the foreseeable future), such as rocks, trees, and water.
Additionally, land encompasses the minerals beneath the earth's surface and the airspace above the land.
Real estate, on the other hand, is defined as the land at, above, and below the earth's surface, as well as everything permanently attached to it, whether natural or artificial.
Therefore, the definition of real estate encompasses all permanent, artificial improvements to the land, including streets, utilities, sewers, fences, and buildings.
Real property is a broader term than real estate because it includes the interests, benefits, and rights inherent to real estate ownership.
Real property encompasses the physical land (the surface and what lies beneath and above it), everything permanently attached to it — whether natural or artificial — and all ownership rights, such as the right to own, sell, lease, and enjoy the land.
Each state has its own laws regarding what constitutes real estate and how to sell it. The majority of real estate is not subject to federal law because, by definition, real estate does not cross state lines.
Estates in Real Property
The amount and nature of a person's interest in real estate is referred to as their "estate in land." Land estates are divided into two major categories: freehold estates and non-freehold estates.
Freehold Estates
Freehold properties are owned. They have an infinite lifespan and may last a lifetime or forever. The following are the examples of freehold estates:
Fee simple
The owner of a fee simple estate is entitled to all property rights. It is the highest form of real estate interest recognized by the law. The estate has an indefinite duration and passes to the owner's heirs upon the owner's death.
Life estate
A life estate is limited in duration to the owner's life or to the life or lives of another designated individual (s). A life estate, unlike a fee simple estate, is not considered an inherited estate.
Non-Freehold Estates
Non-freehold properties are governed by leases. They cannot be inherited and exist "without seisin," or without possession. Non-freehold estates, also known as leasehold estates, are created via written and oral leases and rental agreements.
Examples of non-freehold real estate include:
• Tenancy for years:
This is a lease-created estate with a distinct beginning and end. The lease expires automatically on the end date specified. Also known as estate for many years.
• Tenancy from period to period:
This estate exists when the initial term of the tenancy is fixed, but it is automatically renewable for an indefinite period unless the owner or tenant gives prior notice of termination. Also known as inheritance from year to year.
• Tenancy at will:
Either the owner or tenant may terminate this type of tenancy at any time. Also known as an estate by will.
• Tenancy at sufferance:
This is the lowest estate type recognized by the law. It is a consequence of circumstance and is never created intentionally. It occurs when a person who formerly had the legal right to use the property remains on the property without the owner's permission and legal authorization. The only distinction between a tenant at sufferance and a trespasser is that the former had a right to be on the property at some point, but remained past the terms of the lease or agreement. Also known as a sufferance estate.
Real Property vs. Personal Property
The law clearly distinguishes real property from personal property. Real estate is immobile. It includes the land, all permanent improvements, and rights that "run with" the land.
In contrast, personal property is movable. It is defined as everything that is not real property, including clothing, furniture, automobiles, boats, and any other movable items that are not attached to real estate.
Real Property vs. Real Estate
Real estate consists of land on, above, and below the earth's surface, as well as everything permanently affixed to it, whether natural or man made. Real property consists of everything included in real estate plus the ownership rights to possess, sell, lease, and enjoy the land.
What Is Real Estate vs. Real Property?
Real property is used interchangeably with personal property, but it is a broader term. Real estate is defined as land and all of its appurtenances. Real property includes the interests, benefits, and rights inherent to real estate ownership.
What Are Some Examples of Real Property
A natural formation such as a hill or pond can be considered real property. Likewise, an artificial addition such as a house, a driveway, or a garden shed can alter the natural landscape. If someone owns the land on which any or all of these things are located, he or she may use, manage, and dispose of it.
We inherited these rights from English common law. Obviously, they are limited by state and local laws. If you decide to use your barn as a weekend party house, local zoning laws and your neighbours may have something to say about it.
Is a Vehicle Property?
A vehicle is tangible personal property, not real property, because it is presumably mobile. Unlike many other forms of collateral, a car can be used to secure a loan. A car loan is secured by the vehicle, similar to a home mortgage.
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