What Is Considered Real Property by the Government?
Determining what is and what is not real property is important in real estate transactions. Although definitions may vary by state and area, all real property does share several characteristics.
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Identification
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A piece of real property At its simplest, real property can be defined as a parcel of land and whatever is permanently attached to that land.
Types
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Real property includes: houses, mobile homes attached to a permanent foundation, and buildings such as garages.
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Geography
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In addition, items located under the ground or natural resources attached to the land (such as gas, mineral, or oil deposits and lumber) are also considered real property. However, mineral or oil leases are not real property.
Personal Property
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A shed is an example of personal property The following items are not real property and are legally defined as personal property: mobile homes not affixed to permanent foundations, sheds, and other movable storage shelters.
Considerations
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The most commonly contested type of real property is a mobile home. While some states consider a mobile home real property, others may not. In order to determine if a mobile home is considered real property, check with a local real estate attorney, the local county assessor's office or title company to determine if the appropriate steps have been followed to properly classify the property.
Significance
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Determining if something is real property or personal property can impact taxation and the ability to qualify for a loan. For example, a mobile home not affixed to a permanent foundation is likely not eligible for a real estate loan but may be exempted from property taxes.
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References
- Photo Credit house image by hans slegers from Fotolia.com lone tree in an empty parking lot image by dav820 from Fotolia.com shed image by Julia Chernikova from Fotolia.com
