What is the Difference Between Property and Premises?

The main difference between property and premises lies in the scope of their definitions.

• Property refers to anything that is owned by a person or an entity, whether it is tangible, intangible, movable, or immovable. It can include land, buildings, structures, machinery, and equipment.
• Premises generally refers to a building with the land surrounding it. It is a piece of land, plus all the buildings and permanent structures attached to that land. Premises are considered tangible and immovable property.

In real estate, property is the entirety of the land, buildings, structures, and other components owned by the landowner, while premises refer to the specific portion of the property and/or components of it that are the subject of a contract or agreement. For example, when you buy a home insurance policy, it's for a specific address, which includes the house and the land it sits on. In the context of condos, each unit could be a single premises, especially in the context of the owner's condo insurance policy.

Comparative Table: Property vs Premises

The difference between property and premises can be summarized in the following table:

In summary, property encompasses all items owned by a person or an entity, including both tangible and intangible items, while premises specifically refer to land, buildings, and other structures on the land. In real estate, property includes all assets owned by the landowner, whereas premises refer to the specific portion of the property or components of it that are the subject of a legal document or agreement.