Property Ownership

Real Property vs. Personal Property

Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.

Understanding Real Property vs. Personal Property

The distinction between real and personal property is fundamental in real estate law. Real property includes land, buildings, and items permanently affixed, such as built-in appliances or fixtures. Personal property, on the other hand, consists of items that are not permanently attached and can be easily moved, such as furniture or clothing. This distinction determines how the property is transferred (deed for real property, bill of sale for personal property) and how it is taxed.

Real-World Example

A house and the land it sits on are real property. A refrigerator that is plugged in but not built into the kitchen is personal property. If that refrigerator is built-in, it would be considered real property.

Exam Tips

Think of the word 'immovable' when you see 'real property'. Also, remember that fixtures (items permanently attached) are considered real property even if they were originally personal property.

Related Terms

FixturesChattelsDeedBill of SaleLandImprovements

Practice Questions

Related Concepts

A freehold estate represents ownership of real property with an indefinite duration.

A life estate is a freehold estate that grants ownership rights for the duration of someone's life.

A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.

The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.

A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.

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