The term realty refers to the property or land belonging to an individual or organization, along with the structures built on that land and the rights to that land held by that person or organization. In a legal context, realty more broadly refers to anything permanently affixed to the land, including both physical improvements and abstract rights, such as easements.
What Is Included in Realty?
Realty includes both physical structures and the rights associated with the land. For example, a house is a physical structure that is part of someone’s realty, while an easement that grants the right-of-way to another person is an abstract right that is considered realty. As such, this term can also be used to refer to all immovable property, not just land and associated structures.
Why Is Realty Important?
Realty is important for a variety of reasons. One of the most important is that it provides individuals and organizations with a tangible asset with which to increase their wealth. In addition to this, realty also allows for the transfer of title between two parties. This transfer of title can come in a variety of forms, such as through direct sale, mortgage, lease, or other forms of agreement.
Examples of Realty Transactions
Realty transactions can include the purchase and sale of residential and commercial properties, vacant land, and interests in businesses that own real estate. One example of a realty transaction is the sale of a home, where a seller transfers the title of a home to the buyer in exchange for a sum of money. Another example is the leasing of commercial space, where a landlord transfers the title of the commercial space to the tenant for a given length of time in exchange for rent.
Conclusion
Realty is an important term to understand in the legal world as it refers to any property or land owned by an individual or organization, along with any associated structures or rights. It is important as it allows individuals and organizations to increase their wealth, with realty transactions including the sale and leasing of residential and commercial property, as well as the purchase of vacant land and interests in businesses.