Real Property: Rights, Land, and Fixtures
Real property is more than dirt; it is the land plus everything permanently attached to it and the bundle of legal rights that come with ownership. Understanding what transfers with a sale and how personal property becomes real property is foundational to every transaction.
Land, Real Estate, and Real Property
Land includes the surface, the subsurface minerals below, and the airspace above, subject to public and private limits. Real estate adds permanent human-made improvements such as buildings and fences, while real property adds the intangible bundle of rights, including the rights to possess, use, exclude, and dispose of the property. This bundle-of-rights concept explains why owners can sell, lease, or mortgage separate interests without giving up everything at once. Personal property, by contrast, is movable and not permanently attached.
Fixtures and Trade Fixtures
A fixture is personal property that has become part of the real estate because it is attached and adapted for use with the property. Courts weigh the method of attachment, adaptation to the property, and the parties' intention, with a written contract clause being the clearest evidence of intent. Trade fixtures installed by a commercial tenant for their business remain the tenant's personal property and may be removed before the lease ends. To avoid disputes, sellers should specifically list any attached items they intend to remove.