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Real Estate vs. Real Property: What’s the difference?

On Behalf of | Apr 28, 2022 | Real Estate Law |

Are you confused about the difference between”real estate” and “real property?” You are probably not alone, and residents of Florida may want to learn more about the difference between these two terms used in real estate. They may sound similar but there are some major differences.

According to investment educators, the difference may be in the rights attached to each type of classification.

Is it the land and structures?

Real estate is the land plus any natural improvements that have an addition. They may be artificial improvements, such as buildings or sidewalks. Natural attachments include the trees, water, oil deposits or mineral deposits.

Commercial real estate might include restaurants, office buildings or malls. Once a structure is built upon the land, it has artificial improvements, which can have a lease to others or occupation by you, the owner.

Is it the land, structures and rights?

Real property, on the other hand, has something added. It not only includes the buildings, improvements and the land, but it includes the rights of usage. Property owners may use the property as they wish. You may want to add rights that are in a bundle, which might include the right to sell or dispose of the property as you see fit.

The important things to know

Knowing about the difference in these terms may help take the confusion out of real estate law and its various terms. It might make your transactions easier to understand and complete correctly. If you are investing, you certainly want to know what the terms mean, especially when it comes to financial transactions and your rights.

To most people, real estate contains real property but legally it is important to make the distinction. Real property includes real estate with added common law rights.

Real estate only consists of physical property, such as land or structures. Real property consists of common law rights as well as physical property. This makes them different.