Are you curious about the definition of realty, real estate, and real property? These are some confusing words that have important meanings. Real estate, real property, and realty is property or land that has been legally altered in some way, including the addition of buildings, wells, roads, driveways, and canals. Real property and personal property are treated similarly by the law, although there are some distinctions. In just about every country in the world, the owner of any real property is protected by civil laws.
Realty, real estate and real property
In English, anything related to objects and real property is considered realty. Real is a word that is Latin in origin that actually means “thing.” Real property refers to things that are non-moveable, such as land and any land that has anything attached to it, and is distinguished from personal property, like clothing, appliances, furniture, clothing and money, which are moveable.
When you are dealing with non-movable property, as in realty, then you need to have a title or deed, while personal property is exempt from this legal formality.
- When buying, selling or renting realty, the following terms are useful to know:
- Fee Simple: This type of realty is an indefinite estate, and this estate can be transferred. The fee simple estate is used by the tenant and the tenant can dispose of the property.
- Conditional Fee Simple: The type of estate can last forever, but for the estate to last forever the grantor of the deed hasn’t occurred. If the estate hasn’t occurred, then the property is switched back to the grantor or to a third party.
- Fee Tail: If the tenant has died, then the estate is transferred to the tenant’s heirs.
- Life Estate: This type of estate will go on as long as the grantee is still living, and this is also known as a life tenant. The estate can be sold, but the life tenant can still occupy the estate.
- Leasehold: This type of estate is often a limited time, and this time is applied to a contract, or also known as the lease. The lessee and lessor have agreed on the contract and the lessee has to pay rent to the lessor.