Real Property

Real property is land and the permanent structures attached to it, together with the bundle of ownership rights associated with that land. It differs from real estate, which refers more narrowly to the physical, tangible aspects (land, buildings, natural features). Understanding real property matters when buying, selling, leasing, or financing land or buildings because the rights tied to a parcel can affect use, transfer, and value.

How it works

• Real estate = tangible items: land, buildings, trees, creeks, fences, utilities and other fixed improvements.
• Real property = real estate + intangible ownership rights (the right to use, exclude others, lease, sell, or profit from the land).
• Some rights—such as mineral, water, or easement rights—can be severed from the land and sold separately, so ownership of the surface does not always include all rights.

Note: State law governs real property; rules and terminology vary by jurisdiction.

Real property vs. personal property

• Real property is immovable (land and permanently attached structures).
• Personal property (chattel) consists of movable possessions, like vehicles, furniture, or clothing.

Real property vs. real estate

• Real estate describes the physical parcel and improvements.
• Real property includes those physical elements plus legal rights and interests in the parcel. Without the underlying rights, an owner may have limited control over leasing, selling, or exploiting the property.

Examples

• Real property: land with fishing rights, a home where the owner holds all ownership rights.
• Real estate (but not full real property): land with a creek where water rights are retained by another party; leased commercial space.

Types of estates in land

An owner’s interest in real property is often called an “estate in land.” Major classifications include freehold, nonfreehold (leasehold), and concurrent estates.

Freehold estates

• Last for a lifetime or indefinitely.
• Fee simple absolute: the most complete ownership; inheritable and without a fixed end date.
• Life estate: ownership for the duration of a person’s life; generally not inheritable by the life tenant.

Nonfreehold (leasehold) estates

• The holder has possession and use for a defined or contingent period but not inheritable ownership.
• Common forms:
• Estate for years: fixed-term lease with a definite start and end date.
• Periodic tenancy (estate from year to year): automatically renews for successive periods until terminated.
• Tenancy at will: can be terminated at any time by either party under applicable law.
• Tenancy at sufferance: arises when a tenant remains on the property without consent after a lease ends.

Concurrent estates

• Ownership shared by two or more people.
• Tenancy in common: co-owners hold separate fractional interests that can be transferred or inherited.
• Joint tenancy: co-owners hold equal interests with right of survivorship (interest passes to surviving joint tenants).
• Tenancy by the entirety: special form for married couples in some jurisdictions with survivorship and creditor-protection features.

Common real property rights

Owners typically have a bundle of rights, which may include:
– Right to possess and use the property.
– Right to control and manage the property within the law.
– Right to exclude others and protect privacy.
– Right to lease or license use to others.
– Right to sell, gift, or devise the property to heirs.
– Right to encumber the property (use as mortgage collateral).

Practical considerations

• Verify which rights transfer with a property—especially mineral, water, and easement rights—before purchasing.
• Title searches, surveys, and deed reviews reveal existing encumbrances and severed rights.
• Because laws and practices vary by state, consult a real estate attorney, title company, or qualified advisor if you have questions about specific rights or transactions.

Sources

• Cornell Law School, Legal Information Institute — “Real Property”, “Real Estate”, “Personal Property”, “Concurrent Estate”
• New York State Bar Association — “Ownership Rights in Real Property”