Real property

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Mortgage Dictionary -> Real property

Land, or to use the legal term, real property, is comprised of the surface; buildings, fences, trees, landscaping and other things that are attached to the surface; minerals and other natural resources below the surface; and the sky above the surface.

Land, or to use another legal term, real estate, includes what is known as a "bundle of rights". These are intangibles such as: use rights, interests, and benefits associated with the ownership of the land. At one time, the difference between real property and personal property (movable goods) wasn't dependent of the type of property, but by the way which rights in the property were supported and recognized. Over time, the distinction between the two types of property changed to mean real property did not include personal property.

In economical use, real property consists of natural benefits such as agricultural farmland; infra-structural benefits such as buildings and other permanent objects for human use; and other fixed assets such as machinery.

Real property can come in different types of estate properties. The type of estate property depends on how it is described in the deed, bill of sale or lease. Some of these estate types include: Life Estate, Fee Simple, Conditional Fee Simple, Fee Tail and Leasehold.

Life estates last as long as the tenant is alive. A Fee Simple estate is most common because the tenant has the most control of the property and can freely be transferred. A Conditional Fee Simple estate is the same as the Fee Simple estate but lasts only as long as any included conditions do not happen. A Fee Tail estate allows for the transfer of the property to the tenant's heirs after the tenant dies. A Leasehold estate is the same as rental property but for an agreed upon period of time stipulated in a contract known as a lease.