Classifying Real Estate

Real estate is real property consisting of the buildings and land on it, and its accompanying natural resources like water, crops or trees; movable property of this kind; an equitable interest in it, buildings or houses in general, except houses used for business, and personal residence. Real estate also includes commercial real estate and residential real estate, but these categories are less common than residential and commercial real estate and less common than land. Land includes all improvements on the nature, value or usefulness of the land, whether permanent or temporary, permanent structures, public or proprietary rights, easements, liens and ownership interests in real estate owned or under contract by a tenant. Improvements on land consist of roads, bridges, parks, tennis fields, schools, hospitals, public amenities, etc. Checkout Place Real Estate Team – Oakwyn Realty – Vancouver real estate.

All real property is either completely owned by the owner, or in common by a few owners, permanently attached to the property and forming part of the property for economic, social, and political purposes. When a piece of real estate is considered permanently attached to the property, the term is usually understood to mean something like an entire block, lot or portion of land. However, this meaning has often been percolated into the meaning of “having a property.” For instance, a large piece of vacant land in the vicinity of a gas station, a movie theater or restaurant might be termed a gas station lot, movie theater lot, or restaurant lot, even if it was originally purchased solely for the purpose of having a business there. The location of the piece of real estate, therefore, is not necessarily decisive in determining its classification; and it may be located at a site that would qualify as a residential area but have later on been used for non-residential purposes.

There are a number of different economic, physical, and legal considerations that must be addressed when determining whether a piece of land is to be classified as real estate. The classification must take into account such things as whether the property is located on one or multiple acres, the number of feet between the nearest neighbors, the number of improvements on the property and whether the improvements are used primarily for commerce or for residential purposes. The location of the property as well as the purpose for which it is used are also essential elements in the determination of its classifications.