Real Estate

Real Estate Definition

Real estate is land and the permanent improvements attached to it, along with the legal rights to use, occupy, and transfer that property.

Explanation

The term “real estate” is both the physical assets and/or any structure built on the land itself. (e.g. land, buildings, fixtures) and the property rights associated with the asset.

These rights can be limited by laws and agreements, including zoning rules, HOA covenants, easements, deed restrictions, and landlord–tenant regulations.

Real estate is categorized into different types typically referred to as residential (single-family homes, condos, multi-family), commercial property (retail, office, industrial), and land (raw land, lots, farmland), with mixed-use consisting of multiple types.

Transactions involve the transfer of title through deeds via financing or cash — these transactions are handled by settlement professionals.

Real estate can be used as a home, a business location, or an investment that generates income and/or appreciation.