What Is Included In Real Estate?

The Basics of Real Estate

Real estate refers to land and any property or improvements that are permanently attached to it. This includes buildings, houses, apartments, and other structures. Real estate can also include natural resources such as minerals, water, and crops that are found on the land. When you purchase real estate, you are not only buying the physical property, but also the rights and interests associated with it.

Land and Buildings

One of the main components of real estate is the land itself. This can range from a small plot to a large tract of land. Buildings, on the other hand, refer to any structures that are built on the land. This can include residential properties such as houses and apartments, as well as commercial properties such as office buildings, retail stores, and warehouses. Buildings can vary in size, style, and purpose, and can be owned by individuals, companies, or governments.

Improvements and Fixtures

Real estate also includes any improvements or fixtures that are permanently attached to the land or buildings. Improvements can range from simple upgrades such as landscaping, driveways, and fences, to more complex additions such as swimming pools, garages, and outbuildings. Fixtures, on the other hand, are items that are attached to the building or land and are considered part of the property. This can include lighting fixtures, built-in appliances, and even furniture that is built into the structure.

Real Estate Rights and Interests

When you purchase real estate, you are not only buying the physical property, but also the rights and interests associated with it. These rights can include ownership, possession, and the right to use and enjoy the property. For example, as a property owner, you have the right to live in the house, rent it out, or sell it. You also have the right to exclude others from entering the property without permission.

Mineral and Water Rights

In some cases, real estate can also include the rights to natural resources such as minerals and water. Mineral rights refer to the ownership of minerals that are found beneath the surface of the land. This can include valuable resources such as oil, gas, coal, and precious metals. Water rights, on the other hand, refer to the rights to use and access water that is located on or beneath the land. These rights can be particularly valuable in areas where water is scarce.

Airspace and Subsurface Rights

In addition to land and buildings, real estate can also include airspace and subsurface rights. Airspace rights refer to the right to use and control the space above a property. This can include the right to build structures such as towers, antennas, and signage. Subsurface rights, on the other hand, refer to the right to use and extract resources that are located beneath the surface of the land. This can include resources such as oil, gas, and minerals.

Real Estate and Ownership

Real estate ownership can take different forms depending on the legal system and the specific property. One common form of ownership is fee simple, which is the most complete and absolute ownership interest in real estate. This means that the owner has the right to use, possess, and dispose of the property as they see fit. Other forms of ownership include leasehold, where the owner has the right to use and possess the property for a specific period of time, and condominium, where the owner has both individual ownership of a unit and shared ownership of common areas.

Real Estate and Taxes

Real estate ownership also comes with various taxes and fees. Property taxes are based on the assessed value of the property and are used to fund local government services such as schools, roads, and public safety. In addition to property taxes, real estate owners may also be subject to other taxes such as capital gains tax when selling a property for a profit, and transfer taxes when transferring ownership of a property.

In Conclusion

Real estate includes land, buildings, improvements, and fixtures. It also includes the rights and interests associated with the property, such as ownership, possession, and the right to use and enjoy the property. Real estate ownership can take different forms, and comes with various taxes and fees. Whether you are buying, selling, or investing in real estate, understanding what is included in real estate is essential to making informed decisions and protecting your interests.