Legal Definitions - real

The term "real" in a legal context can have several distinct meanings, often referring to things that are tangible, fixed, or adjusted for true value.

1. Relating to Fixed or Immovable Property

   In its most common legal sense, "real" refers to property that is fixed and immovable, primarily land and anything permanently attached to it, such as buildings, trees, or minerals beneath the surface. This is often contrasted with "personal property," which is movable.

   • Example 1: A family purchases a single-family home with a large backyard in a suburban neighborhood.

     Explanation: The house and the land it sits on are considered real property because they are fixed and cannot be moved. The legal transaction involves the transfer of ownership of this immovable asset.

   • Example 2: A commercial developer acquires a large, undeveloped plot of land on the outskirts of a city to construct a new shopping mall.

     Explanation: Even without existing structures, the plot of land itself is fixed to the earth and is therefore classified as real property. The developer's rights and obligations pertain to this immovable asset.

2. (Civil Law) Attached to a Thing Rather Than a Person

   In civil law systems, a "real right" or "real obligation" is one that is tied to a specific piece of property or an object itself, rather than being tied to a particular person. This means the right or obligation generally stays with the thing, regardless of who owns it.

   • Example 1: A utility company holds an easement that allows them to run power lines across a private landowner's backyard to service other properties.

     Explanation: This easement is a real right because it is attached to the land itself. Even if the landowner sells their property, the new owner must still permit the utility company to access the easement, as the right is tied to the land, not the original owner.

   • Example 2: When a person takes out a mortgage to buy a house, the bank places a lien on the property.

     Explanation: The lien is a real obligation because it is attached to the house. If the homeowner fails to make payments, the bank has a right against the property itself, not just a personal claim against the homeowner. This right remains with the property until the debt is satisfied.

3. Actual; Genuine; True

   This sense of "real" aligns with its everyday meaning, referring to something that is authentic, existing in fact, or not imaginary.

   • Example 1: During a trial, the prosecution presents a piece of evidence that is a real photograph taken at the crime scene, not a doctored image.

     Explanation: The photograph is considered real because it is genuine and accurately depicts the scene as it was, providing true factual information to the court.

   • Example 2: A company's board of directors debates whether the CEO has the real authority to unilaterally approve a major merger, or if shareholder approval is also required.

     Explanation: Here, "real" refers to whether the CEO possesses the actual, genuine power to make such a decision, or if their authority is limited by other corporate governance rules.

4. (Of Money, Income, etc.) Adjusted for Inflation; Measured in Purchasing Power

   In economics and finance, "real" is used to describe monetary values (like wages, income, or returns) that have been adjusted to account for inflation. This provides a more accurate picture of their actual purchasing power over time, rather than just their nominal (face) value.

   • Example 1: An economist analyzes the real wages of workers over the past decade to determine if their ability to purchase goods and services has truly increased, despite nominal salary raises.

     Explanation: By calculating real wages, the economist adjusts for the rising cost of living (inflation), revealing the actual buying power of the workers' earnings, rather than just the dollar amount they received.

   • Example 2: A retiree lives on a fixed pension, and over time, they notice that the real value of their pension decreases as prices for groceries and utilities continue to rise.

     Explanation: Although the dollar amount of the pension remains constant, its real value—what it can actually buy—diminishes due to inflation, meaning its purchasing power erodes over time.