Business Glossary

1. real property such as land, land improvements, and building held for business use in the production of income. It is contrasted with personal property.
2. real property held for investment purposes. Increased value in real estate has typically exceeded the rate of inflation. But real estate as an inflation hedge varies from locality to locality. Also, leverage exists with real estate since a high percentage of the investment may be made with debt funds. Down payments are often less than 25%. However, a large capital investment is usually required. Real estate provides capital appreciation or depreciation. Certain real estate investments, such as residential and commercial property, generate annual income. Directly managed real estate income property provides tax deductions in the form of depreciation expense, interest expense, and property taxes.

piece of land and all physical property related to it, including houses, fences, landscaping, and all rights to the air above and earth below the property. Assets not directly associated with the land are considered personal property.

(informal) space on a flat surface of limited size, such as a motherboard (on which different components consume different amounts of real estate) or even a computer screen. Compare screen estate .

land and attached structures. Interest in real estate can be protected through various insurance policies.

See also homeowners insurance policy , BusinessOwners Policy (BOP) , business property and liability insurance package

1. in law, land and everything more or less attached to it. Ownership below to the center of the earth and above to the heavens. Distinguished from personal property . Same as realty .
   Example: Figure 159.

2. in business, the activities concerned with ownership and use transfers of the physical property.
   Example: The following are engaged in real estate business activities:

   • accountants
   • appraisers
   • attorneys
   • brokers
   • counselors
   • government regulators
   • mortgage brokers
   • mortgage lenders
   • salespersons
   • surveyors
   • title companies