What is a real estate and what rights are acquired with it?
Real Estate Law is responsible for the legal aspects of property that Spanish civil law considers as real estate. The aspects that it regulates include the origin and extinction, as well as the acquisition, modification and transmission of property rights. It also includes their dismemberment and the encumbrances to which this type of property is the object. Therefore, it is necessary for us to understand what real property is and how real property rights apply.
What is a real estate?
In the first place, we must understand that assets correspond to the possessions, properties and wealth that constitute the patrimony of each natural or natural person, or of a company or legal person. This classification has its origin in Roman Law. In accordance with article 333 of the Civil Code, all objects that are or may be the object of appropriation (called patrimonial assets) are considered as movable or immovable property.
Real estate, also known as real estate, are all tangible objects that have a fixed location in space that prevents them from being displaced without detriment to their nature.
By contrast, goods that can be transported from one place to another are movable property. It should be noted that the Civil Code adopts an enumerative and meticulous criterion that, on occasions, deviates from the criterion of mobility. Article 334 of the Civil Code lists a long list of goods and their classification.
Thus, land, buildings, farms, garages, fences, fixtures, improvements, roads, shrubs and trees (but not crops), sewers, structures, utility systems are real estate. Title to real estate typically includes title to air rights, mineral rights, and surface rights that can be bought, leased, sold, or transferred together or separately. Real estate must be registered in the Property Registry.
Rights derived from the ownership of real estate
Possession of ownership of real estate guarantees that the owner enjoys a series of rights, among which are:
- The enjoyment of use. You can occupy the property using it as a primary or secondary residence.
- The right to rent it and obtain an income for this concept.
- Right to transfer it as a non-profit or temporary donation to various social actions.
- The owner assists him with the right to use the property for the development of an economic or business activity.
How is real estate classified?
Once you know what a real estate is, it is appropriate to know that the classification of heritage assets as real estate is contained in article 334 of the Civil Code. In this article they are classified as real estate according to four criteria: by nature, by incorporation, by destination and by analogy.
Derived from the name of real estate, the original real estate that is first included in article 334 of the Civil Code is the soil. Lands are called in the Civil Code, and mines and quarries are included in this concept as long as their matter remains attached to the deposit. Live or stagnant waters are also included.
Other assets that are incorporated into the first are also considered real estate, such as the following:
– Constructions of all kinds attached to the ground, such as buildings, roads and others.
– Growth of trees, plants and the fruits that derive from them. For example, our jurisprudence has considered real property oranges attached to trees.
– Everything else that is attached to a property in a fixed way and that cannot be separated from it without breaking the material or deteriorating the object. The heritage that is incorporated into the real estate can be the result of the hand of man or the effect of nature. According to this section, sinks, toilets and bathtubs, radiators and exterior pipes, when forming part of a property, lose their particular nature and go on to acquire the legal status of property by incorporation.
Any movable property that is intended by its owner to serve real estate. This case is important because it counts as part of the real estate when it is sold or seized. According to article 334 of the Civil Code, the following are properties by destination:
– The objects of use or ornamentation placed in buildings by the owner of the property, in such a way as to reveal the purpose of joining them permanently. Such is the case of statues, reliefs, paintings or others.
– The instruments, machines or utensils destined by the owner of the farm to the industry or exploitation that is carried out in a building, and that satisfy the needs of the exploitation itself. It should be noted that jurisprudence establishes that the agreement to extend the mortgage to furniture does not include machinery that has been incorporated after the date of law.
– Live species breeding sites when the owner has installed them in the property so that they are permanently part of it. Such is the case of hatcheries of animals, birds, bees, fish farms.
– Land and cultivation supplements.
– The benefactions destined to the management of the water, such as dams and constructions that are destined for their use to remain installed in a fixed point of a river, or water source.
It refers to administrative concessions for public works, easements and other real rights over real estate. There is jurisprudence that the right of lights, of views on someone else’s farm, the right to install posters on a terrace has been considered as real property. There is jurisprudence in which administrative concessions for the use of land in municipal cemeteries have also been considered real property.
How are the rights associated with a real estate considered?
All of the foregoing refers to what corporeal real estate is. There is an independent consideration that refers to intangible real estate. This includes the rights and actions that fall on real estate. Such are the cases of easements and mortgages, real rights that fall on real estate.
Not many taxpayers know exactly what real property is and the differences it has with movable property; quite an important distinction for tax purposes. There are assets that are subject to the taxation of different taxes such as personal income tax, Wealth Tax or IBI. Despite this, it is important to note that this classification may be relative, and that different branches of law may disagree on what is considered movable property and what is real estate. As taxpayers, we must be aware of the provisions of the regulatory regulations of each of the taxes to know what consideration is made in each case. In any case that you need to clarify your doubts about this and other issues on the matter real estate in Sky Marketing we are at your entire disposal. Contact us!