Definition
Corporeal refers to tangible, visible physical assets that can be seen and touched. In real estate, corporeal property includes both real property (like buildings and land) and personal property (like machinery and tools). This term distinguishes physical assets from intangible ones, such as easements or intellectual property, which are considered incorporeal.
Examples
- Buildings: These are large, constructed assets that are permanently attached to land. Examples include residential homes, office buildings, shopping malls, and warehouses.
- Pavement: This refers to the paved surfaces on land, such as driveways, walkways, streets, and parking lots.
- Fences: These are structures placed around a piece of land or property for enclosure, privacy, or security purposes.
- Machinery: In a commercial or industrial setting, machines and equipment used for manufacturing or other operational purposes are considered corporeal personal property.
Frequently Asked Questions
What is the difference between corporeal and incorporeal property?
Corporeal property refers to tangible physical assets that can be touched and seen, such as buildings and equipment. Incorporeal property, on the other hand, refers to intangible assets that do not have a physical form, such as easements, intellectual property, and patents.
Can corporeal property be both real and personal property?
Yes, corporeal property can be both real and personal property. Real property includes land and anything permanently attached to it, like buildings, while personal property includes moveable items, like machinery or tools.
Are leasehold improvements considered corporeal property?
Yes, leasehold improvements, such as renovations or additions made to a leased space, are considered corporeal property because they involve tangible changes to the physical space.
How is corporeal property valued?
Corporeal property is typically valued based on its physical characteristics, utility, condition, location, and current market conditions. Real estate appraisals are commonly used to determine the value of corporeal real property, while personal property can be valued based on depreciation, usage, and replacement cost.
Does corporeal property depreciate?
Yes, corporeal property, especially buildings and other structures, can depreciate over time due to wear and tear, aging, and other factors. Depreciation can be used for tax deductions on income-producing properties.
Related Terms
- Incorporeal Property: Intangible assets that do not have a physical presence, such as easements, rights, patents, and licenses.
- Real Property: Permanent, fixed property such as land and buildings.
- Personal Property: Movable property that is not attached to real estate, such as vehicles, furniture, and machinery.
- Tangible Property: Physical assets that can be touched and seen, encompassing both real and personal property.
- Easement: A right to cross or otherwise use someone else’s land for a specified purpose, considered an incorporeal property right.
Online Resources
- Investopedia: Tangible vs. Intangible Assets
- IRS: Understanding Depreciation
- Real Estate Glossary: Corporeal Property Definition
References
- “Real Estate Principles” by Charles F. Floyd and Marcus T. Allen
- “The Real Estate Investment Handbook” by David F. Sumners
- “Property: Principles and Policies” by Thomas W. Merrill and Henry E. Smith
Suggested Books for Further Studies
- **“Principles of Real Estate Practice” by Stephen Mettling and David Cusic.
- **“The Real Book of Real Estate: Real Experts. Real Stories. Real Life.” by Robert T. Kiyosaki.
- **“Essentials of Real Estate Investment” by David Sirota.
