Anyone who owns land or invests in real estate has heard the term “real property.” This is a legal concept that describes what can be owned and sold. It includes everything that is at, above, or below the earth’s surface as well as anything permanently attached to it. This includes everything from trees, shrubs and flowers to structures like houses or garages. It also encompasses minerals that are below the ground’s surface and airspace above it. Real property is distinguished from personal property by its inability to be moved and by its permanent attachment to the land.
The distinction between real and personal property is important to mortgage lenders, investors, insurers and buyers of both types. Getting the distinction right is an essential part of the process of purchasing a home or other type of real estate. It also affects taxation and the ability to sell the property.
A common mistake that people make is confusing the term with the idea of ownership. When someone owns real property, they possess the bundle of rights that is that land and any improvements. This bundle of rights is known as the title deed, or deed of trust. In addition to the actual property, the deed of trust includes all the rights of ownership. This is the primary reason that when people own real property, they must be careful not to give away the rights they occupy.
In order to understand the concept of real property, it is helpful to look at an example. Let’s say you bought a piece of lakefront property and decided to build a dock on it. You would need power tools, nails and wood in order to build the dock, which is personal property. However, once you build the dock and attach it to the land, it becomes real property. This is because once the item has become affixed to the land, it cannot be separated from the land without significant effort. If you still don’t understand, you can pay sellmyhousefastmiamifl.com a quick visit!
In addition to the physical characteristics that distinguish real property, there are other factors that determine its value. These include the location and proximity to other amenities, such as markets and transportation routes. Natural locational attractions, such as water supply, soil fertility and mineral deposits, also have a significant impact on the value of real property. It is these externalities that determine the price at which a person can sell their real property.