Owning a property signifies authority and right of use that may be lawfully exercised. A line that separates real property from personal property is drawn. Generally, real estate pertains to land. It includes not only what’s above the surface of the earth but also everything of a permanent nature over or under it. That includes structure and minerals. Title to real estate also includes air rights. Moreover, real estate is divided into commercial and residential.
Vacant land and residential lots, houses, buildings, trees and fixtures within the boundaries of a property are examples of real property. Any physical property or improvement on a land is considered real property.
The sale or lease of real estate is a major economic activity in America. Commercial real estate involves the sale and lease of property for business purposes. Residential estate engages in the sale and rental of land and houses to individuals and families for family living.
The sale of residential estate is heavily regulated. It requires a real estate agent or a broker. Real estate agents or broker receive a commission for selling a residential estate. They must be at least eighteen years of age, must have attained a high school diploma, must have passed the written exam about real estate properties and its laws, and must be licensed.
Commercial real estate, on the other hand, is any property owned and raised to produce income. Examples of these are shopping centers, hotels, malls, schools, offices, and farmlands. Here are six common categories of commercial property: office buildings, industrial properties, retail/restaurants, multifamily properties, land, and miscellaneous.
Commercial real estate is a component of gross domestic product. Real estate has contributed about 46.4 billion dollars as of 2012, which is 3% of GDP. This also gives contribution to the improvement of the economy. Selling of real estate is also a highly profitable business nowadays. It does not lose its value like other products, so it is recommended for business.