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Real Estate in Texas

How is Real Estate or Real Property Defined in Texas?

Generally, real estate or real property includes (1) land, and (2) any permanent improvements and structures that are attached to, situated upon, or associated with the land.  However, there are some types of property which can be difficult to differentiate between real property and personal property because of the ability to remove the item.

An earnest money contract may define an important item as either real property (that will stay with the land after the closing of the sale and purchase), or as personal property (that will be removed from the land on or before the closing of the sale and purchase).  Therefore, it is important to clearly identify what important items will be removed or stay after the closing.  When in doubt as to the characteristics of real property (the buyer will own post-closing) or personal property (the seller may remove without compensation to the buyer), address the issue in the earnest money contract.

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