What is the difference between real property and personal property?
- 4 years agoFavorite Answer
Answer: Real vs. Personal Property
Real Property refers to land and things permanently attached to the land. Personal property generally refers to everything else: the items which are movable and not a part of the land.
For example, I own 40 acres, named (as all law students know) Blackacre. I build a house and a yard barn on the property, and park my car in the yard. When I sell the "real estate", I can take the car, but I cannot take the barn and house (if that were somehow physically possible), because they've become "fixed" to the land, and pass with the land. Likewise, when the house and land is sold, I can take my tv and sofa out of the house, but I can't remove the cabinets, because they've become fixed to the house, which is fixed to the land, which means it passes with the land.
Local custom may determine what usually "comes with" the house and what the seller usually removes prior to vacating. (e.g., Are the hot tub and swing-set "attached" or still portable?) A "manufactured home" may be portable, then fixed, then portable again, so these issues would be good to discuss in writing. You can also sell a barn (or anything else movable) without selling the land it sits on.
Similarly, removal of forests or minerals (purchased as real property) converts them to "personal property". Agricultural crops may be deemed personal property, if they are intended to be severed from the land.
To put it simply . . . real property is land and anything permanently attached to it. Personal property can be tangible or intangible.
Tangible personal property is something you can touch and is movable. Intangible personal property is property that has no physical existence. Examples are: stocks, bonds, bank notes, trade secrets, patents, copyrights, professional reputation, goodwill and trademarks. Some "untouchable" items may be represented by a certificate or license.
Personal property is anything you own other than real property and is divided into two categories: tangible and intangible. Tangible personal property is something you can touch and is movable. Intangible personal property is property that has no physical existence. Examples are: stocks, bonds, bank notes, trade secrets, patents, copyrights, professional reputation, goodwill and trademarks. Some "untouchable" items may be represented by a certificate or license. Real property is land, anything attached to it and any rights that are appurtenant.
- curtisports2Lv 74 years ago
Real property is land and any permanent structures on that land. Anything else is personal or business property. A mobile home you own that sits on land you don't own but pay rent on is not real property, it's personal property. If you own the land and the mobile home is attached to a permanent foundation, the land is real property and the mobile home is a permanent structure on it. Real property has a title that is transferred and recorded in public records when sold or given. Certain personal property (vehicles) may be be titled and their transfer recorded (state DMV, usually), but most personal property is transferred directly from one party to another, sometimes with a bill of sale or receipt, often, not.
- KiniLv 74 years ago
Real property is land or real estate
Personal property is everything else you own
- LiteralLv 64 years ago
Real property is permanently attached to land through a slab or foundation. A mobile home, even though attached to utilities and sewer, if it is still on wheels is personal property. Every other possession you have is personal.
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- coraannLv 74 years ago
Real property is houses, buildings and land. Personal property is your clothes,
your furniture, your car etc,etc.
- mokrieLv 74 years ago
Real property usually refers to real estate and personal property would be your clothes, computer, furniture etc.