What is Property?

Property is anything that can be both controlled and owned. Both of these conditions must be met in order for something to be legally considered property. For example, buildings, houses and land can be both controlled and owned. They are called real property. Automobiles, clothing and jewelry can also be owned and controlled, they are called personal property.

Is water property? For water to be property, it must both be controlled and owned. Rain water that falls out of the clouds is not property because it cannot be owned or controlled. Water in the middle of the ocean is not property because it is not owned or controlled either. Water that gets pumped out of a well on your land is your property because you both control it and own it. Water in lakes, and 200 miles off the coast are property of this country.

Is air property? Air is not property because it cannot be either controlled or owned. The exception to this is if air is encompassed in a structure such as a tank. In this circumstance it is both controlled and owned, and is therefore property.

What is real property? Real property is land and anything attached to it.  This includes the earth, trees, plants, and any physical structures built and attached to them. Real property can be both owned and controlled. Real property can be described as a “bundle of rights in property”. These rights include enjoyment, possession, control, exclusion, disposition and others. The ownership of real property is transferred by a document called a deed. Real property is encumbered by a mortgage or a deed of trust when it is used as collateral for a loan.

What is personal property? In general, personal property is anything that can be controlled and owned that is not real property. This implies that personal property is mobile. A commonly  used example of real property versus personal property is a tree. When a tree is growing out of the ground it is real property. When it is cut down into wood it becomes personal property. Then, when the wood is used to build a home and is attached to the ground again it is real property.