Real Estate vs Real Property: What’s the Difference?

There is a lot of confusion between Real Estate and real property. Many people use the two terms interchangeably, but they are very different. This blog post will discuss the differences between Real Estate and real property and help you understand the terms more.

What is Real Estate?

Real estate is a term that refers to land and anything permanently attached to it, including buildings, trees, minerals, and water. If it’s on the ground and Immovable, it’s real estate. Real estate can be either commercial, residential, Industrial, or Agricultural.

Residential Real Estate

Residential Real Estate is a property for living purposes, including single-family homes, apartments, townhouses, etc.

Commercial Real Estate

Real Estate used for commercial purposes is known as Commercial Real Estate. Commercial Real Estate includes the following:

  • office spaces
  • retail spaces
  • warehouse
  • and other similar structures.

Industrial Real Estate

Industrial Real Estate is a property for manufacturing and production purposes. Including factories, warehouses, and more.

Agricultural Real Estate

Agricultural Real Estate is a property that is for agriculture or ranching. Such as farmland, pastureland, and other types of agricultural land.

What is Real Property?

Real property is the bundle of rights you have to a piece of land. These rights include the right to use the ground, the right to possess the land, and the right to exclude others from the land.

While real estate refers to the physical land, real property includes the legal rights to use and possess the land. You can own real property without holding any real estate.

As a Real Property owner in the Philippines, you have certain rights and duties.

Rights of a Real Property Owner

As a real property owner in the Philippines, you have the right to:

  1. Possess the property
  2. Use the property
  3. Enjoy the fruits of the property.
  4. Dispose of the property

Duties of Real Property Owners

  1. Pay Property Tax

  2. Keep their property in good condition and not violate any zoning ordinances.

  3. Get necessary permits before making any changes on the property.

  4. Respect the rights of their neighbors.

What Are the Differences Between Real Estate and Real Property?

Now that you know the basics of Real Estate and real property, let’s take a closer look at the key differences between the two:

  1. Real estate is a physical piece of land, while real property includes the legal rights to use and possess the land.
  2. You can own real property without owning any real estate.
  3. As a real property owner, you have certain rights and duties.
  4. Real estate is physical and tangible, while real property is not.

Hopefully, this blog post has helped clear up some of the confusion between Real Estate and real property! If you’re still unsure which one is right for you, we suggest talking to a qualified real estate professional. They will help you understand your options and make the best decision for your needs. Thanks for reading!

Jane

Jane

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