Real estate is land plus everything permanently attached to it — buildings, fences, and the rights that come with the ground itself. Understanding the difference between the physical thing (real estate) and the legal rights to it (real property) is the foundation everything else rests on.
Land, real estate, real property
Land is the earth's surface, the airspace above, and the subsurface below. Real estate is the land plus permanent man-made improvements. Real property is real estate plus the legal 'bundle of rights' you hold as an owner. Personal property (chattel) is everything that is movable and not permanently attached.
Core terms
- Bundle of rights
- Possession, control, enjoyment, exclusion, and disposition — the rights an owner holds.
- Fixture
- Personal property that has become real property by permanent attachment (e.g., an installed ceiling fan).
- Chattel
- Personal property — movable items not attached to the land.
- Appurtenance
- A right or improvement that transfers with the land, such as an easement.
Exam favorite: the tests for whether something is a fixture (often remembered as M.A.R.I.A. — Method of attachment, Adaptation, Relationship of parties, Intent, Agreement). Intent is the most heavily weighted.