For many of us, real estate and real property are the same and we think that it is about a piece of land or a building that comes under our ownership. But in reality, there is a thin thread of difference in them.
Real estate is just the piece of land along with the natural and artificial objects attached to it. Owning a real estate means that you are the owners of just that part of land along with the trees, plants, oil, mineral deposits etc… Any external and additional improvements and attachments to the land like fencing, sidewalks, and aisles will also be included.
Whereas a real property is completely a different one and in most cases misunderstood for real estate. In fact, the real property gives you not just the ownership of the land and the other immovable objects surrounding it but also the lawful rights of complete ownership with proper documentation. In a broader and clearer sense, it includes real estate and the whole lot of rights on it which gives the owner the right to use the property as per his wish and needs.
Thus, real property is the real estate with its rights and real estate is just the property. For a person who is interested in owning a house, it is always better to go for the real property concept because he gets the complete rights on a piece of land and this would give him the feeling of ownership in real. A better choice among the two would be the latter for, even if there are any property or ownership concerned issues, he will stand a better chance in winning the case for all the rights of the property are vested on him.
Real property rights
When we say that a person who owns a real property is vested with a bundle of rights, what are these rights that he gets to enjoy the house or the land? How can they be used for his benefits? Let`s take a deeper look at some of them.
These rights, in a wider sense, entice the party with five different rights. They are:
- Right to possess – he becomes the legal and unquestionable person to unconditionally occupy the property. -Right to control – since he holds the complete rights on the property he is in a position to question and order anybody using even a single bit of his land. He has all rights to do this and stop others from influencing their interests on him or his land.
- Right to enjoy – he can do anything with the property, change it, modify it and make it look as he wants it but within the limits of his boundary, with the help of others.
- Right to exclude – he has lawful rights in stopping others from entering or using his property.
- Right to dispose – at the time of selling or disposing of the property, he can give it to anybody. He has the rights to fix an amount for it and decide when and how to dispose of it.
The truth about real estates
Real estate became popular only a few years ago. In the olden days, there was nothing like real estates or properties and people used to just sell and buy houses through brokers who worked for a commission in finding a right search for his client. All payments and rights were all discussed among the selling and buying parties. In the earlier days, the available land was more and the countable population to occupy them was very less. People used to own acres and acres of land and there was absolutely nobody or no law to question them.
But when the land ceiling act fell in place, it clearly said that a person was eligible to hold or own lands only to a particular limit and beyond this anything and everything straight went under that particular state government`s control. This act to an extent was helpful in allotting lands and properties equally among people and it served the purpose better. But this has become a business now and people sell lands for sky-rocketing prices understanding that they want for owning even a piece of land would make the client pay anything for getting the ownership rights. These interests are being misled in today`s commercial world.