What is the difference between real estate and real property?

Real Estate & Real Property: An Overview of Differences

Did you know what is the difference between Real estate and real property? Do you also use the correct terminology? The two words might sound similar but they have a subtle difference. While both these terms have much in common, a key difference sets them apart. 

Real estate refers to the land whereas real property examines the rights related to that land.

• Real estate is a term that refers to the physical land and resources attached to it.
• Real property includes the physical property and includes bundle ownership and usage rights.
• Most of the general public mixes the usage of these two words but from a legal perspective, it is very important to understand the differentiation of these two words.
• Real estate property is only physical land whereas real property consists of both physical objects and common law rights.

 

Real Estate

Real estate refers to land and any natural and artificial, man-made improvements that are attached or added to the land. Attachments can be split into two categories- natural and artificial. Natural attachments include trees, plantation, water, mineral deposits etc, artificial attachments includes a fixed structure, building, sidewalks, ramps, fences etc. It can be further categorized into two segments residential and commercial, residential real estate refers to a place for living of individuals or families, whereas commercial refers to the place of working, i.e offices, factories, workshops, malls, restaurants etc.

Real estate can be further classified into leased or owner-occupied. Both residential and commercial properties can be leased or owner-occupied. For example flats in Jaipur or apartments in Jaipur can be bought or else can be taken on rent. Flats in Jaipur by KGK Realty is one such example, they can be rented out from their original owners and can be owned too.

 

Real Property

Real Property is a less commonly understood concept and is many times confused with real estate. Real property in itself is a broader concept, it includes real estate property like land, buildings and other additional attachments, and it also includes the right of use of certain land.

Renters and leaseholders may have the right to inhabit land or buildings—a real property consideration—but those things are not considered real estate. It includes a bundle of property rights. It grants owners the ability to use their real estate property as they see viable.

Five different rights of property owners include. 

1. The right to occupy the property.
2. The right to determine uses for others
3. The right to enjoy is the right to use the property without outside interference.
4. The right to exclude is the right to refuse others' interests or uses for the property.
5. The right to dispose of is the right to determine how and if the property is sold or given to another party.

Though there are some exclusions to these rights. Keeping in mind all the rights and key rights KGK Realty gives its end users the right to choose the best apartments in Jaipur.