The first of these key terms is real estate. Real estate is defined as land and any buildings that are permanently affixed to the land. Real estate also includes any permanent improvements or features, including fences, bridges, trees, water, and minerals. These features and improvements are considered permanent parts of the land and are therefore included with land in the comprehensive definition of real estate.
What, then, is real property? By definition, real property includes real estate along with certain ownership and usage rights. Generally speaking, real estate and real property are often considered synonymous to the general public, but there can be subtle legal differences. The primary difference between real estate and real property is that real property includes real estate along with the rights related to it. There are five different rights that are incorporated into real property, often called the ''bundle of rights.''
The primary ownership in both real estate and real property is ownership of land. Land is defined as everything from the earth's surface down to the center of the earth and up from the surface, including the airspace above it. This includes any trees or vegetation on the property, water and minerals, and anything that may be buried in the soil. Land is considered part of real estate, and one can own raw land that does not have any improvements on it. However, real estate also includes any improvements to the land, such as houses, buildings, fences, etc.
Real property is real estate plus its bundle of rights. For example, a piece of land with a house built on it and a separate gardening shed would all be included under real property ownership. The items in the house, such as the furniture, and the items stored in the gardening shed, such as the lawnmower and gardening tools, are considered personal property.
