What is the difference between real estate and real property?

The terms real estate and real property are often used interchangeably, but they actually have distinct meanings. Real estate refers to the physical land and any structures or improvements on it, while real property includes not only the physical land and improvements, but also the legal rights and interests associated with it.

Real estate is essentially the tangible property, including the land, buildings, and any other structures that are permanently attached to it. This can include homes, commercial buildings, and even natural resources like timber and minerals. Real estate can be owned, bought, and sold just like any other type of property.

Real property, on the other hand, is a legal concept that includes the rights and interests associated with the real estate. This includes ownership rights, such as the right to use, sell, or lease the property, as well as any easements, restrictions, or other encumbrances that may be associated with the property.

In practical terms, the difference between real estate and real property can be seen in the ownership of land and structures. For example, if a person owns a piece of land and a house that is built on it, the land and the house together would be considered real estate. However, the legal ownership rights associated with the land and the house would be considered real property.

Real property can also include intangible assets, such as intellectual property rights or leases. For example, if a person owns a commercial property and leases it to a business, the ownership of the property would be considered real estate, while the lease agreement and associated rights would be considered real property.

Understanding the difference between real estate and real property is important for anyone involved in the buying or selling of property, as well as for those who are involved in property management or real estate law. By understanding the legal rights and interests associated with real property, individuals can make informed decisions about ownership, use, and management of real estate assets.