In the eyes of the law, not all property is created equal. The legal system makes a fundamental distinction between two broad categories of property: real property and personal property. This distinction is one of the oldest and most important concepts in law, as it determines how property can be owned, transferred, taxed, and inherited. The rules that apply to a piece of land are vastly different from the rules that apply to a car or a stock certificate.

Real property, often referred to as “real estate,” consists of land and everything that is permanently attached to it. This includes not only the land itself but also the buildings, structures, and fixtures on it, such as a house or an in-ground swimming pool. It also includes the rights associated with the land, such as the mineral rights below the surface and the air rights above it. Real property is characterized by its immobility; it cannot be moved. Because of its high value and permanence, the laws governing the transfer of real property are very strict. A transfer of ownership must be done through a formal written document, typically called a deed, which must be recorded in a government land records office.