Real estate and real property are two concepts under the same legal banner. While both aspects are governed by similar land ownership rules, they also have nuanced disparities in their respective legalities.
If you’re the owner of a residential or commercial piece of land, knowing the differences between real estate and real property can help you grasp the scope of your proprietorship. This quick primer dissects the key distinctions between the two types of estate. If you want to learn about specific details, ask a real estate lawyer for more information.
What is Real Estate?
Real estate refers to a piece of land and all attachments on it. These additions include artificial improvements, such as buildings, fences, and sidewalks, and natural resources, such as trees, crops, water, minerals, and oil.
There are five main categories of real estate, and it’s critical to understand each one if you plan on buying or selling property. Here’s an overview of the various types:
This classification includes all property intended for residential habitation. It includes single-family homes, condominiums, townhouses, cooperatives, duplexes, triplexes, fourplexes, and mobile homes.
Business properties mostly fall under this category. Some examples include office spaces, retail outlets, apartment complexes, hospitality buildings, self-storage facilities, grocery stores, parking lots, and movie theaters.
Similar to commercial real estate, this type is for business operations, but those within industrial fields. Such properties include manufacturing plants, production facilities, food processing or distribution centers, freezer and refrigerated storage facilities, solar generating stations, and research and development parks.
This group of real estate includes all vacant and raw lands. Examples include undeveloped property, agricultural lands such as farms and ranches, orchards, and planned urban development (PUD).
The last category covers all public properties built for a specific purpose. These structures include mixed-use buildings, transit-oriented development (TOD), recreational sports centers, government buildings, churches, schools, and senior and assisted living facilities.
What Is Real Property?
The scope of real property encompasses a segment of land and every natural attachment and man-made improvement on it. This definition echoes that of real estate, with one distinction: real property also includes a “bundle of rights”.
What’s a Bundle of Rights and What’s Included in It?
A bundle of rights is a collection of legal privileges granted to a property’s owner. This statement means that if you purchase real property, you can do whatever you want with the land however you want to. Below are the five legal rights included in the ownership bundle:
- Right of Possession is a statement of the property’s ownership.
- Right of Control allows the titleholder to use the property any way they see fit, as long as it’s lawful.
- Right of Exclusion lets the owner limit who’s allowed on the property.
- Right of Enjoyment allows the bundle grantee to participate in any legal acts of leisure.
- Right of Disposition gives the rights holder the ability to permanently or temporarily transfer property ownership to another party.
Other Practice Areas Related to Real Estate and Real Property
Like most rules and regulations, the scope of the subject’s ownership laws affects other governing principles. Here are some practice areas related to real estate and real property.
Considered by most legal practitioners as a component of real estate law, this area generally focuses on the law of renting real estate. Landlord-tenant law covers rent, leases, and tenant eviction for residential and commercial units.
You can avoid tax errors such as overpayment and underpayment by having sufficient knowledge and understanding of the tax code. Your real estate significantly affects your taxes, especially if it’s mortgaged.
It’s a good move to talk to an estate planning lawyer if you want to keep real estate within your family. Your attorney can help you create a family arrangement to maintain the property’s ownership.
Learning your state’s insurance law in conjunction with real estate law can benefit you and your property. Be sure to get homeowner’s insurance with good coverage to protect your estate from damages.
Accidents and Injuries
If a guest sustains a physical injury within the confines of your estate, you may be held financially liable. As the homeowner, any medical expenses needed may fall on you.
Contact a Real Estate Lawyer for Your Property
Real estate ownership involves many legal components. Knowing your basics is essential, as it can help you navigate any transactions or disputes. However, having a professional by your side makes any process easier.
If you need legal services, don’t hesitate to call a legal expert. Having a real estate lawyer has many benefits, such as facilitating ownership transfers and negotiating lease agreements, all provided with your best interests in mind.