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What is land vs. real estate vs. real property?

Land thus includes not only the surface of the earth, with the boulders and plants found on it, but also the underlying soil. It includes the subsurface, the minerals and substances that lie far below the earth’s surface as well as the airspace, the air above the earth, all the way into space. Most of the surface of the earth, of course, is not land at all, but water. Federal, state, and local laws govern the ownership and use of the wetter parts of the earth, including oceans, lakes, and rivers. Private contracts, as well as laws and regulations, can also limit ownership and use rights in the surface, subsurface, and airspace of land.

Real estate is defined as land plus all human-made improvements to the land that are permanently attached (annexed) to it. (See Figure 2.1.)An improvement to land can be any artificial thing attached on or below ground, such as a building, fence, water line or sewer pipe, as well as growing things that are made part of the landscaping.

Real Property

Real property is defined as the interests, benefits, and rights that are automatically included in the ownership of real estate. (See Figure 2.1.) In many states, the terms real estate and real property are synonymous, and are used to refer to both the physical property and the rights of ownership, while other states still make the distinction.

Traditionally, ownership rights of real property are described as a bundle of legal rights. These rights include the

• right of possession,
• right to control the property within the framework of the law,
• right of enjoyment (to use the property in any legal manner),
• right of exclusion (to keep others from entering or using the property), and
• right of disposition (to sell, will, transfer, or otherwise dispose of or encumber the property).