Final answer:
Real property refers to land and any attached structures or improvements, encompassing both natural resources and man-made edifices. It is integral to property rights and economic growth, serving as an investment and providing both financial and nonfinancial returns.
Step-by-step explanation:
Real property refers to land and any structures that are permanently attached to it. This can include both natural resources obtained from the land, such as minerals or timber, and man-made structures like houses, buildings, and other permanent fixtures.
The concept of real property is central to the economic principle that growth depends on the protection of property rights, which enables markets to function effectively. Property rights ensure that individuals and firms have the freedom to own property and utilize it according to their preferences, including entering into contracts using said property.
Therefore, real property not only comprises the physical assets but also the rights associated with owning and using the property productively. Assets like housing serve a dual purpose; they are forms of financial investment with the potential for capital gains and offer nonfinancial returns, such as providing a place to live.