Real Property.

The Interpretation Clause says, "Real property means lands, tenements, and hereditaments, whether corporeal or incorporeal, and includes all chattel interests in land." Particular attention must be given to this definition of the term real property, for it conveys a meaning different from that which it usually bears. For instance, a leasehold is declared to be real property, it being comprised in the definition "chattel interests." Thus the good-will of tenants and sub-tenants will be treated as portions of real property, and will be kept, in schedules and valuation lists, apart from personal property.

It will be remembered that under the Land Tax Act owners were asked to value their land, but as it had been omitted to impose a penalty, numerous landlords refused or neglected to obey. Under the Property Assessment Act every person is bound to furnish a return of all his real property, to value it, and to make a declaration that his return is correct. If he should be overlooked in the distribution of schedules he must obtain them; and the non-receipt of a notice to furnish a return does not exempt him from punishment for neglect (Clause 31). Under this system owners and leaseholders will have themselves to blame, to a great extent, for any erroneous statements as to the number or description of their properties.