Also known as: real thing · real property · realty
Written by attorneys · grounded in primary & secondary sources — see below
An immovable form of property consisting of land and things attached to it such as buildings and fixtures. This category of property passes by deed, will, or operation of law and is subject to distinct rules governing security interests, recording, and transfer.
Rebecca Ross borrowed funds from Redwood Bank to expand her cattle operation. She executed a deed of trust pledging her 400-acre ranch as security for the loan. When Ross defaulted on payments, the bank initiated foreclosure proceedings against the ranch under the deed of trust terms.
Radiance Media hired an appraiser to value a residential property before listing it for sale. The appraiser considered only objective market factors and excluded any consideration of the owners' familial status. The appraisal report supported the listing price without violating applicable fair housing standards.
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Raymond Ramos's will devised 'the lot on Elm Street next to the courthouse' to his niece. Ramos actually owned a different lot on Elm Street that matched the surrounding description. The court admitted extrinsic evidence showing Ramos's intent and construed the will to pass the intended parcel.
Raven Logistics installed a specialized climate-control system in its warehouse to protect stored goods. The system was bolted to the concrete floor and connected to the building's electrical and ductwork. When the company later granted a security interest in its assets, the system qualified as a fixture under real property law.
After Rina Rahman's death, the appointed personal representative determined that possession of her farmland was necessary to pay estate debts and preserve the property. The representative demanded delivery of the land from the presumptive heir and maintained the crops pending sale.
Regal Apparel failed to pay county property taxes on its retail building for three years. The county conducted a tax sale and conveyed the building to a new purchaser by operation of law. The purchaser received marketable title without any deed from Regal Apparel.
Real things include land and attached structures that are subject to mortgages and deeds of trust. Personal property is governed by different rules such as Article 9 of the UCC for security interests. A mortgage creates a security interest specifically in real things upon default allowing foreclosure.
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Yes. Real things pass by operation of law through intestate succession, adverse possession, foreclosure, or tax sale. They also pass by will through devise. These methods do not require a deed from the transferor although a fiduciary may later execute one to perfect title.
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Goods become fixtures when they are so related to particular real property that an interest in them arises under real property law. Once classified as fixtures the goods are treated as part of the real things for purposes of mortgages and security interests.
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Yes. When a will describes a parcel the testator does not own but extrinsic evidence shows the description matches another parcel the testator owned the court may construe the will to pass the intended real things rather than allow the gift to fail.
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…court. Compare Gardner v. Michigan Cent. R. Co. , 150 U.S. 349; Harrison v. Foley , 206 Fed. 57 (C.C.A. 8); Interstate Realty & Inv. Co. v. Bibb County , 293 Fed. 721 (C.C.A. 5); see Mills, supra note 4, at 52. [^maj-10]: For a recent survey of the scope of the doctrine, see Sharp & Brennan, The Application of…