Tell The Difference: Real Estate vs Real Property

Thinking about your right to own the land and how you might own it? The first Well before you go on that question, you must understand what kind of land you are standing on. There are aspects you must consider and analyze to better choose the rights you can possess.

By then, there are types of properties you must consider, real estate and real property. At first, it seems like there is no difference when we hear or read the words “real estate” and “real property”, thus at the back of these two, they are different in various aspects. 

Let us learn how these two key terms differ and in line with this, discover what type of land property you possibly have at the present.

What is Real Estate?

Real estate is anything that is built on the land permanently. This can be natural, such as plants, trees, and unearthed mineral deposits, or can also be man-made such as infrastructures like homes and buildings.

Since Real Estate is basically a signifier of real property, investing through direct purchase of properties such as homes and property rentals is possible. Also, investing indirect purchase through Real Estate Investment Trust (REIT).

There are 5 categories lined up under real estate, namely Commercial, Residential, Raw Land, Industrial, and Special Use. 

a. Commercial. These are properties that are used mainly for businesses. Commercial establishments include public and private hospitals, malls, grocery shops, parking lots, and others that serve mainly for the benefit of the public.

b. Residential. Given its name, residential real estate refers to properties with residencies. This is where houses and other residential properties were built.

c. Raw Land. Basically, raw lands are those properties that are not yet developed. These often are vacant spaces used for farming agricultures.

d. Industrial. In contrast, industrial lands refer to the properties that are used for manufactures. Factories and other manufacturing properties are the most common example of Industrial ones.

e. Special Purpose. Lands designated for special purposes are the ones we often use. These are properties owned by the government such as schools, parks, government infrastructures, and other public spaces.  

What is Real Property?

Real property is a term that covers a wider range than real estate. It covers almost all portions, even real estate. In fact, this term is not that common and understood by many. There are misconceptions that need to be cleared and used the right way.

This category refers not only to the land but also to the firms build within. Be it houses or businesses, real estate covers all the things that stand on it. Aside from that, the use of its structures and any improvements are being acknowledged.

Since real property covers real estate, it comes to a bundle of rights that must be undertaken with actions properly. These bundles of rights are rights that are connected to the owners of the property.

1. The right of owning the property. Having the power to own the land and the house is your right to stay.

2. The right of knowing the purpose. It states that if you have the right to take over, it is your right to know the reasons for uses, even if it is for others.

3. The right to take over with no interventions. If the law granted the right to use the property, no one can intervene or hinder you from using the property.

4. The right to decline for other’s requests on interest. You have the right to stop them from using your property by any means. You can protect your property from unwanted intruders who want to take advantage in the end.

5. The right to trade or render the property. It basically means that you have the right to choose to whom you will sell or give your property with no questions or hindrances. It is up to you if how you will make the deal and the conditions you will put within.

REAL ESTATE VS REAL PROPERTY?

After knowing the inclusions of real estate and real property, we also need to know how these two differ from each other. 

In the end and in the easiest term, how does this term differ? Both terms differ on various aspects, most especially on the rights they possess, well literally differ on a bundle of rights.

Real Estate has its rights listed on the physical aspects, which mainly include the land. Basically, this only tackles the property you have and not the rights on it. It will be a lot more like using clothes that are not yet bought or you don’t rightfully own but being paid.

Meanwhile, Real Property has both the actual property and common laws. It is just ahead of a step where its rights are more precise and direct than real estate and is more powerful as well. In layman’s terms, the real property covers not only land property but the property structures as well. It is bundled on both the physical aspects and the law that succumbs it. 

Therefore, real estate is an aspect that is just under the real property. It simply concludes that Real Property is a wider term that covers many forms in which real estate is included.

HOW TO CLASSIFY PROPERTY?

Properties are mostly classified as residential, free land, agricultural or linear. You can easily classify what property you’re in by understanding further about its guidelines and value in this section. Below are the known property classifications. 

1. Residential. We assess this property through its value on the market by using a technique called Mass Appraisal. We analyze the market value on its sales, thus it may come somehow lower or a bit higher on its sale price as its values on sales are assessed on the middle scope.

2. Farmland. We assess this aspect on its capability, through agriculture and how much it produces. The products are then determined and valued with the help of Rural Assessment Policy and prepared beforehand by the government’s guidelines.

3. Farm Attributes. This somehow differs on the farmland, as this mainly refers to the properties that are standing within the farmland. If it was built with a residence, it will be assessed depending on the market value. If commercial or industrial aspects stand within, it will be assessed depending on the actual facilities built and the total area being used. 

4. Non-Residential. This term refers to the spaces where industrial force takes place. These are factories, power plants, and other facilities used for production. Meanwhile, commercial properties operating within the non-residential areas are not considered non-residential properties but considered multi-purpose. 

5. Machinery and Equipment. This includes the properties that are used for producing various machines and equipment. The best examples of this are the gas plants and oil field facilities. These are then assessed depending on their use, be it for processing or manufacturing.

6. Linear. Basically, this includes all line transmissions, from telephones, pipes, railways, electric towers, and cables, and others. The provincial assessors using rates that are also regulated assess the linear property.

7. Industrial. This is a new category considered as a property that includes facilities such as NEB, AER, and AUC. Basically bigger plants are considered Industrial and linear and these are regulated with the help of the facilities listed.

COMMERCIAL: CASH FOR HOMES?

Thinking about selling your house? Cash for Homes is the perfect tool for you. Basically, Cash for homes will help to sell your house. They help you sell your houses in any condition and help you receive the corresponding amount, even on the highest offer.

Why do you need to sell your house with the help of experts? Selling your property involves a lot of paper works. If you are working, obviously you don’t have time to work on it. The best thing to do is seek help from a professional who has knowledge of real estate. Yes, you will pay for the service of the real estate agent, but all you have to do is wait for the money after selling your property.

Cash for Homes, is a great way to finish the burden on these things. This solution will help you by any means. By just sitting right in the comfort of your homes, you can look for potential buyers interested to buy your property.

Conclusion

Real estate and real property deal with the same thing, yet they differ in terms of coverage. While real estate deals with the most specific one, real property focuses on a wider range, which includes even real estate and other forms.

Explaining further, their bundle of rights is what we must look at. As real estate holds onto any physical forms attached, real property has nailed the physical property, which also includes what the real estate has. 

Wrapping things up, remember, now that we understand how they differ, we must remember the rights it carries. We must always hold on to it to protect ourselves and our properties. Protect these against fraud property managers who only want to grab our belongings and want to take advantage of us.