Understanding What a Real Property Means

Real property includes land and anything permanently attached to it. It also extends to the interests, benefits and rights inherent in ownership of real property.

A basketball hoop in the driveway, however, isn’t considered real property because it can be moved and doesn’t factor into the land’s value. Knowing the difference between real and personal property is important for homeowners.

Land

The concept of real property is often defined as the physical land and things that are permanently attached to it, like homes, fences and barns. It also includes anything that grows on the land, such as trees and crops. However, there are some important distinctions between land and real property that can be overlooked.

These distinctions include the fact that real property is immovable and tangible, whereas personal property can be moved to other locations. Real property is also characterized by its location in space and its association with an address, which can help identify it.

Moreover, real estate is typically divided into distinct parcels that are subject to a variety of laws and regulations, such as zoning. Real estate taxes are based on these parcels, which also serve as the basis for most land development decisions and ownership transfers. Each parcel is identified by unique identifiers that can also be used for record-keeping purposes.

Buildings

The two primary categories of real property are buildings and land. Buildings include structures reserved for human habitation, such as houses and apartments, and commercial structures like restaurants or retail stores. Other types of real estate property are industrial, agricultural and recreational. Buildings are also divided by quality, with class A buildings considered the best in terms of infrastructure and location and class B properties considered less attractive and older. Technology makes monitoring and investing in run-down buildings easier than ever.

Fixtures

The lines between real property and personal property can become blurred when it comes to fixtures and fittings. Items that are affixed to the property with glue, cement, screws or other methods tend to be considered fixtures since they can’t easily be removed without significantly changing the property structure. This includes items like built-in cabinets and bookshelves.

A property’s fixtures may also include any landscaping. This includes trees, flowers and shrubs that are permanently affixed to the land and may even increase property value. It’s important to understand the difference between real and personal property when selling a home. This can prevent disputes between buyers and sellers that could jeopardize a sale. You can learn more on this from sellmyhousefastmiamifl.com.

Generally, items that are considered to be real property will convey in a sale of the house. However, this isn’t always the case. Buyers and sellers need to be aware of what types of fixtures will convey in a sale so that they don’t accidentally remove something that should have been included.

Personal Property

Often, the way in which an asset is categorized can make or break its taxation. For example, a state may tax real property differently than it does personal property. Reexamining the categorization of an asset may result in a significant reduction in a tax burden.

There are two broad categories of personal property: tangible and intangible. Tangible personal property is anything that can be touched and relocated, such as cars, furniture and household appliances. It also includes inventory held for sale or rental, raw materials and work-in-process.

As a legal concept, real estate encompasses all the land at, above and below the Earth’s surface, as well as everything that is permanently attached to it. Five rights come with the ownership of real property, which include the right to possess, use, sell and enjoy it. Real property is also a subject of real estate contracts, such as deeds and leases. Real property contracts are enforceable in court.