What Exactly Does Real Estate Include: Soils and/or Houses/Buildings?

Real estate can sometimes seem like a confusing territory, as the definition can vary depending on the type of interest being acquired. While the answer to whether real estate includes both the soils and the houses/buildings is often straightforward in many cases, it can indeed be nuanced. Let's explore the various scenarios in detail.

Real Estate Basics

Real estate encompasses the land and the buildings attached to it. However, the ownership structure can differ and can include various types of interests. Understanding the specific type of interest can help clarify the extent of the included properties and elements.

Standard Real Estate Purchase

In most standard real estate transactions, the property typically includes all buildings and fixtures that are permanently affixed to the land. For example, if you purchase a plot of land with a house, the transaction usually covers the land, the house, and any permanent fixtures attached to the house like the garage or fence. This comprehensive ownership ensures that the buyer has the full bundle of property rights associated with the land and its structures.

Special Cases in Real Estate Ownership

Mobile Homes and Tiny Homes

While many properties come with clear delineation of what is included in a real estate purchase, there are some special cases that warrant attention. Specifically, mobile homes and tiny homes that are built on trailers often fall into a distinct category. These types of properties typically involve rental of a space by the owner of the mobile home, as they remain mobile and are not usually secured to a land foundation.

Condominiums

Condominiums (often referred to as "condos") provide another area where real estate ownership can be a bit more complex. In a condominium setting, the owner typically holds individual ownership of the unit, usually a specific apartment or flat, but does not own the building or the larger communal grounds. Instead, ownership of the common areas and facilities is collectively held by the homeowners' association (HOA).

The residents of a condominium building are members of the HOA and collectively pay monthly dues to maintain the communal areas and ensure the ongoing upkeep of the overall property. This differs significantly from the standard real estate transaction, where the purchase typically includes not only the land but also the buildings and any permanent fixtures on the land.

Closed-Ended Real Estate Definitions

Real estate definitions often depend on the type of transaction and the specific laws governing that transaction. In the United States, the general answer is yes, when you purchase a property, it typically includes the land, any buildings on the land, and any permanent fixtures attached to those buildings. However, exceptions do exist.

Mobile Homes and Condos

Mobile homes and tiny homes, often on trailers, operate under different rules. The owner of a mobile home typically only owns the mobile home itself and not the land where it is placed, unless the owner has acquired a land lease. This specific arrangement can create complications and unique considerations in the transaction.

Condominiums, on the other hand, are governed by the homeowners' association and involve shared ownership of the common areas. This shared ownership means that while the condo owner may hold personal property rights over their unit, the overall property and common areas are collectively owned and maintained by the HOA.

Conclusion

Real estate ownership is multifaceted and can involve both the soil and buildings on that land, but it is important to understand the distinct ownership structures involved in different types of properties. Whether you are purchasing a land parcel with a house, a mobile home, or a condominium, it is essential to clarify the scope of the transaction with the relevant legal and real estate professionals before proceeding. Understanding these nuances can help ensure a smooth and informed property acquisition process.