Real Estate Term of the Day – Real Property
The term real property refers to land and any property directly attached to it, or any subset of land that has been improved through legal human actions. Real property also outlines the right of user, control, and disposition of the land and its attached objects. Examples of real properties are anything from buildings and roads to ponds and canals.
Real property is really just a more formal name for what we typically call real estate. It can also include natural resources along with manmade resources. Legally, owning real property involves the bundle of rights transferred from seller to buyer upon the sale of a property. The rights dictate the use, transfer, and/or sale of real properties – which includes possession, control, and exclusion. Different types of estates will define what the real estate rights associated with property ownership will be. The kind of estate depends on the terms of the lease, deed, or will and the bill of sale through which the estate was received, but here are some common examples:
- Fee simple
- Life estate
- Future Interest
- Contingent Interest
- Lien Holder