Real Property

Written By
Paul Tracy
Updated August 5, 2020

What is Real Property?

Real property is anything that is attached to land.

How Does Real Property Work?

For example, Company XYZ's factory, the five-acre lot on which the factory sits and whatever oil, gas or mineral rights that are attached to the land are real property. Company XYZ's fleet of delivery trucks are not real property because they can be moved. The new electrical system Company XYZ installed in the factory is part of the real property, however, because it cannot be moved.

Why Does Real Property Matter?

The owners of real property usually have to pay property taxes on it to the local municipality or county.