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Last Updated on 11/30/2022 by Mark Verhoeven

Real Property Definition

Real property explained

Real Property is a plot of land and everything permanently related to it. The owner of real estate has complete ownership rights, including the ability to acquire, sell, lease, and enjoy the property.

Real property process

It’s helpful to start with land and real estate to understand how real property is defined. Land is anything that is permanently bound by nature (or at least for the foreseeable future) to the earth’s surface, stretching below to the earth’s center and upward to infinity, including boulders, trees, and water.

Land also refers to the minerals under the earth’s surface, as well as the airspace above it.
Real estate, on the other hand, is defined as the land above, below, and on top of the earth’s surface, as well as anything permanently tied to it, whether natural or manufactured.

As a result, any artificial, permanent improvements to the property, such as roadways, utilities, sewers, fences, and buildings, are included in the concept of real estate.

Types of real property

Freehold Estates
Ownership is involved with freehold estates. They have no end date and can endure a lifetime or indefinitely. The following are some examples of freehold estates:

Fee simple. A person who owns an estate in fee simple has complete ownership of the property. It is the greatest level of real estate interest recognized by the law. The estate has an indefinite existence and goes to the owner’s heirs when the owner dies.

Life estate. A life estate is only valid for the owner’s lifetime or the lifetimes of one or more additional individuals (s). A life estate, unlike a fee simple estate, is not regarded an inherited estate.

Non-Freehold Estates
Leases are used in non-freehold estates. They cannot be passed down the generations and exist without ownership. Non-freehold estates, sometimes known as leasehold estates, are formed through written and oral leases and rental agreements.

Benefit of real properties

Land at, above, and below the earth’s surface, as well as any objects permanently tied to it, whether natural or man-made, is referred to as real estate.
For all intents and purposes, the terms real estate and real property are interchangeable.
Personal property includes any items that do not fall within the concept of real property, such as clothing, automobiles, and furniture.

 
If you have any other questions regarding Real Property contact the mortgage experts at 864-397-8500 or click Mortgage Rates Today!
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