Definition:
Real property refers to land and anything permanently attached to it, such as buildings, houses, fences, or other structures. It includes both the physical land and the legal rights associated with owning it.
Example:
When Mark buys a house, he’s not just purchasing the structure—he’s buying the real property. This includes the land the house sits on, the garage, the backyard fence, and the legal right to use and sell the property.
Explanation:
Real property is a legal term that goes beyond just the physical land or house. It also includes improvements made to the land (like a driveway or deck) and the “bundle of rights” that come with ownership. These rights typically include:
- The right to use the property
- The right to lease or rent it
- The right to sell or transfer it
- The right to pass it down through inheritance
- The right to exclude others from it
Real property is different from personal property, which includes movable items like furniture, appliances, or vehicles. In real estate transactions, clearly distinguishing between real and personal property is crucial—buyers need to know exactly what’s included in the sale.
Why is Real Property Important in Real Estate Transactions?
Understanding what qualifies as real property is essential for both buyers and sellers. For buyers, it ensures they’re getting everything they expect—like the land, house, and any fixtures (e.g., built-in cabinets or lighting). For sellers, it’s important to clarify what is and isn’t included in the sale to avoid disputes. Real property forms the core of any real estate deal, so knowing what it entails helps avoid misunderstandings and protects everyone’s legal rights during the transaction.