🏠 What Is Real Property? Definitions & Examples

Real property refers to land and anything permanently attached to it—such as buildings, structures, and fixed improvements. Unlike personal property (movable items), real property includes the rights, interests, and benefits tied to land ownership.

How Real Property Works

Real property is defined by two components: the physical land and the legal rights associated with it. These rights may include possession, control, enjoyment, exclusion, and disposition. Real property is legally distinct from personal property and plays a key role in ownership, taxation, development, and real estate transactions.

Real property typically includes:

  • Land and the soil beneath it
  • Homes, buildings, and other permanent structures
  • Improvements such as fences, wells, driveways, and utilities
  • Air rights and subsurface rights (minerals, oil, etc.)
  • The bundle of rights associated with ownership

Real property is used in deeds, titles, tax assessments, zoning decisions, and real estate contracts.

Why Real Property Matters

In Real Estate Transactions:

  • Determines what legally transfers during a sale
  • Affects property taxes and appraised value
  • Establishes ownership boundaries and rights
  • Defines what is included or excluded from the contract

Examples of real property vs. personal property:

  • House = real property
  • Shed permanently attached to concrete = real property
  • Detached tools, appliances, or furniture = personal property
  • Rooted landscaping = real property

Example of Real Property in Action

A seller lists a home with a built-in outdoor kitchen. Because the structure is permanently attached, it is considered real property and is included in the sale unless the contract states otherwise. Movable patio furniture, however, is personal property and does not automatically transfer.

Why Real Property Matters for FSBO Sellers

  • Helps clarify what stays with the home during the sale
  • Prevents disputes over fixtures or built-in features
  • Supports accurate MLS listing descriptions
  • Ensures the contract properly reflects included property

Understanding real property rules helps FSBO sellers avoid misunderstandings and negotiate confidently.

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