What Is the Difference Between Real Property and Real Estate?

Although people use the terms real estate and real property interchangeably, they’re not identical. In real estate law, one refers to the physical land and structures — the other to the ownership rights attached to them.

🏠 What Is Real Estate?

Real estate refers to the physical property — the land, the buildings, and any natural or artificial improvements on it (like fences, driveways, or wells). When you sell a house FSBO, this is what’s listed on the MLS and marketed to buyers.

📜 What Is Real Property?

Real property goes a step further. It includes the ownership rights — such as the right to sell, lease, occupy, or use the land. These legal rights are known as the “bundle of rights.”

  • Right of possession (to own it)
  • Right of control (to use it legally)
  • Right of enjoyment (to benefit from it)
  • Right of exclusion (to deny access to others)
  • Right of disposition (to sell or transfer it)

🔍 In Short

Think of real estate as the thing you can see and real property as the rights you own. When you sell your home through Brokerless, you’re transferring both — the land, the structure, and the ownership rights to the buyer.

📈 Learn More About FSBO & MLS

Explore how property rights, titles, and MLS listings work together when selling without a traditional agent.

See How It Works

❓ FAQ: Real Property vs Real Estate

1. Is land considered real estate or real property?

Land is both — it’s part of real estate as a physical asset, and part of real property when ownership rights are attached.

2. Can I sell real estate without transferring all property rights?

Yes. For example, you might lease the land (transfer partial rights) while keeping ownership. Most MLS-listed home sales transfer full rights to the buyer.

3. Why does this distinction matter to FSBO sellers?

Understanding what you own and what you’re transferring helps you prepare accurate listing documents and avoid title issues.