Have you ever wondered what the word “realty” really means? Find out below.
Any legal improvements to land that have been done by man is defined as real property, realty, and real estate. These improvements could include buildings and houses, as well as wells, roads, canals, and the inclusion of machinery. The two main subunits of property according to the laws in every country are referred to as “real” property and “personal” property. Civil law protects real property or realty in all countries, providing guidelines for buying and selling property among other regulations.
History of the word “realty”
The word “realty” dates back to Latin, the word “real” meaning “thing”, In the English language it means related to things and these things include real property personal property.
Laws of Protection
In any common law, realty is protected. Parties have to resort to a form of legal action if they want to sell real property or exchange ownership. Today’s law clearly states the difference between real property and personal property. Real property would be considered land and all the objects that is attached to that land (immovable property) and personal property is personal belongings such as clothing, furniture, and personal money (movable property). The difference between movable property and immovable property is simple as immovable property doesn’t move, such as land with a title or deed and moveable property is property that the buyer would need a title for.
Estates and Ownership
There are different kinds of interests that the law recognizes, which are called estates. The estate property is determined by a deed, a lease, a grant, will, or a purchase of the property. Estates and ownerships have legal rights, and the time of the estate. Any person who is using and enjoying an estate is referred to as a tenant.
Some common realty terms
- Fee Simple – Fee Simple refers to realty that can be transferred freely and the estate has an unlimited time. This is the most popular and common estate, because the tenant gets to use and enjoy the estate and has rights over the disposal of the property.
- Conditional Fee Simple – The Conditional Fee Simple is an estate that can last forever, but the conditions of the estate has to be stipulated by the grantor of the estate. If the grantor of the estate doesn’t stipulate any conditions, then the property is reversed to the grantor.
- Fee Tail – The Fee Tail is an estate that is given to the heir upon the death of the tenant.
- Life Estate – The Life Estate is also referred to as a ‘life tenant’. The estate lasts as long as the grantee is alive, which is why it is called the life estate. If the estate’s contract states the realty can’t be sold it can’t be changed while the grantee is still alive.
- Leasehold – A Leasehold is an estate that has been set up for a limited time on a contract. The lease is between two parties, a lessee and the lessor. An example of a leasehold is when someone rents a house or an apartment and has a one year’s lease, and the lessee agrees to pay the rent for that one year.