What Is Real Property?

Real property is a type of property which refers to the piece of land owned by someone. It also covers any natural resources and man-made objects or structures which are attached or integrated into the real estate, found on or under the land (i.e. buildings, fences, ponds, crops, minerals, roads, canals, etc.).

Aside from having ownership of the land, real property also comes with a bundle of legal rights, including possession, disposition, use, and control over that piece of real estate and everything that comes with it. In simpler words, you have the right to do whatever you want with it. When you buy real estate, then the seller will transfer these bundle of rights to you.

Real Property vs Personal Property

Compared to real property which is immovable, personal property is movable and can be anything that is subject to ownership excluding land. It is further divided into tangible and intangible property.

To give a better picture of the difference between the two, take this situation as an example. If you purchase a hammer, wood, and other construction materials for your home they are considered your personal property. When you use these objects to build a gazebo, that structure isn’t considered personal property anymore but instead becomes real property since it is now a part of your land.

InvestFourMore Real-Time Stats (as of 9/06/18)
16 flips currently in progress. 159 flips completed. 19 rentals properties.
Follow me to see how I make money in any market cycle. Join Free Now >

Go back to the glossary