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Real Estate

Personal vs. Real Property

admin 2019.03.02 19:18 Views : 90

Personal vs. Real Property

Personal property is anything that is not real property.

What is the opposite of real property? Personal Property.

Personal Property is readily moveable from one location to another, such as furniture or automobiles.

Personal property is sometimes referred to as chattels (also sometimes called "Personalty"). "Chattels" evolved from the word cattle, one of man's earliest important possessions. Chattels are transferred by means of a bill of sale. The Uniform Commercial Code regulates the transfer of chattels and the use of chattels as security for debts.

Personal property includes money, movable goods, evidences of debt, and "choses" (things) "in action." "Choses in action" is a legal phrase that describes the right to recover money or other personal property through a judicial proceeding. This includes the right to recover something under a contract, such as money owed on a note, as well as the right to recover damages for a tort or private wrong.

Sometimes real property becomes personal property or personal property becomes real property.

  • A "fixture" is defined as something that once was personal, but has been installed. Therefore, it becomes real property.
  • When an item (personal property) becomes "affixed," personal property becomes real property.

Since a FIXTURE is considered REAL ESTATE, it would remain with the house when it is sold. It is also called an "appurtenance" (a right, privilege, or improvement that belongs to and passes with the transfer of property, but is not necessarily a part of the actual property) since it has been added to the property.

We will continue learning about fixtures on the following screen.