What distinguishes personal property from real property?

The distinguishing characteristic between personal property and real property is that personal property is movable while real property is fixed. This means that personal property refers to items that can be easily transported from one location to another, such as furniture, vehicles, and electronics. In contrast, real property encompasses land and anything permanently affixed to it, such as buildings and other structures.

Understanding this difference is essential in real estate, as it influences various aspects of transactions, ownership rights, and how items are treated under the law. For example, when a home is sold, the real property includes the land and any structures on it, whereas personal property like appliances or furniture may or may not be included in the sale depending on the agreement between the buyer and the seller. This clarity helps to avoid confusion regarding what is part of the sale and what is not.

This concept is foundational in real estate because it helps define rights and obligations associated with property ownership, financing, and tenancy.