Real Estate · Property Ownership

What is the difference between real property and personal property?

Correct answer

Real property is land and things permanently attached to it (buildings, fixtures); personal property (chattel) is movable property not permanently attached — a key issue is whether an item is a fixture (real) or removable (personal)

  1. A They are the same
  2. B Real property is land and things permanently attached to it (buildings, fixtures); personal property (chattel) is movable property not permanently attached — a key issue is whether an item is a fixture (real) or removable (personal)
  3. C Real property is only land
  4. D Personal property is only money

Why this is the answer

REAL vs PERSONAL PROPERTY: REAL PROPERTY (realty): Land and everything PERMANENTLY ATTACHED to it — the land itself, buildings, fixtures, and the bundle of legal rights; transferred by deed; PERSONAL PROPERTY (chattel/personalty): MOVABLE items NOT permanently attached — furniture, vehicles, appliances (unless built in); transferred by bill of sale; FIXTURE: Personal property that has become PERMANENTLY ATTACHED to real property, thereby becoming part of the real property (e.g., a built-in dishwasher, a ceiling fan, attached shelving); TESTS FOR FIXTURE STATUS (MARIA / IRMA): Method of attachment; Adaptability to the property; Relationship of the parties; Intention of the party who attached it; Agreement between the parties; EMBLEMENTS: Annual crops grown by a tenant are personal property; TRADE FIXTURES: Items a commercial tenant attaches for business — remain the tenant's personal property and can be removed; DISPUTES: Whether an item (e.g., a chandelier, window treatments) conveys with the sale or not — the contract should specify; the real vs personal property distinction, and especially the fixture analysis, is core national exam content.
Source: Real Estate National — Property, Real vs Personal Property

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