Which of the following best describes "real property"?

The term "real property" encompasses a broader concept than just physical structures or land. The correct choice is best described as a "bundle of legal rights," which refers to the various rights that a property owner has concerning their property. These rights may include the right to possess, use, sell, lease, or mortgage the property. Essentially, real property consists of both the physical land and any structures on it, along with the legal rights associated with ownership.

This perspective is foundational in real estate, as it highlights that owning real property is not merely about the physical attributes, but also about the legal entitlements that accompany that ownership. Understanding real property in this way allows for a more comprehensive view of property rights, transactions, and legal considerations pertinent in real estate practices.