• Property ownership includes land, which can be a good investment over time.Countryside land image by Rose from Fotolia.com
  
  Property ownership is one way people invest and acquire what they need to live well. Legally speaking, property falls into two distinct categories: real property, which includes land and improvements made on the land (such as buildings or homes) and personal property, which includes all other private property on a smaller scale.
  
  

Proof of Ownership

• One rule that applies to just about every type of expensive property is that you should have proof of ownership. For most smaller items (including the majority of personal property) possession is sufficient to indicate proof of ownership. However, this isn't enough for real property. Land owners and homeowners must have deeds, which indicate who owns the property, define the extent of the property (such as boundary lines, in the case of land) and how the property was acquired. Without a deed it can be difficult to prove ownership or real property, which can lead to a land dispute or lawsuit.
  
  

Taxes

• Local governments assess taxes on real property, while also charging sales tax on the purchase of new property. In the case of property tax, local governments require all homeowners and land owners to pay a fixed percentage of their properties' assessed values. This money goes to fund schools and local government operations in the community.
  
  Sales tax, which buyers pay at the point of sale, applies to most consumer goods. It likewise goes toward funding local governments. Most states and counties collect sales tax, which merchants must collect and submit to the local government.
  
  

Insurance

• Property owners are responsible for insuring their property. This can mean several different things. For most personal property, owners can take out a policy that protects against damage or theft. This type of insurance includes comprehensive automobile insurance and renters insurance.
  
  The other major type of property insurance is liability insurance. This is included in some homeowners insurance or car insurance policies. It pays for the injury or death of another person as a result of the property owner's negligence. For example, homeowners liability insurance would cover the medical bills of someone who was injured tripping in their yard.
  
  

Resale Disclosure

• Whenever anyone decides to resell property, another series of rules apply to the transaction. The seller must disclose the condition of the property for sale without any intent of defrauding buyers. In addition, the seller is responsible for collecting taxes as per local tax codes.