The ownership of anything that is not real estate is known as personal property. This type of property encompasses all possessions that are movable and not permanently attached to land.
Understanding Personal Property
Personal property refers to any property that is not real property. While real property (or real estate) includes land and anything permanently affixed to it, personal property is everything else. It represents ownership of assets that can be moved or transported. This category is broad, covering a vast array of items from everyday objects to financial instruments.
What Distinguishes Personal Property?
The fundamental distinction between personal property and real property lies in its mobility and attachment to land.
| Feature | Personal Property | Real Property |
|---|---|---|
| Definition | Movable assets; not permanently attached to land | Land and anything permanently attached to it, like buildings |
| Mobility | Generally movable | Immovable; fixed location |
| Examples | Money, vehicles, furniture, stocks, bonds, intellectual property | Land, houses, commercial buildings, fixtures, minerals beneath the surface |
| Transfer | Often transferred by bill of sale or simple delivery | Transferred by deed |
Categories and Examples of Personal Property
Personal property can be further categorized into tangible and intangible forms:
- Tangible Personal Property: These are physical items that can be touched and moved. They have a material existence.
- Movable goods or chattels: This includes items like furniture, electronics, clothing, vehicles, and equipment. For instance, a homeowner's couch or a farmer's tractor would be considered tangible personal property.
- Money: Currency, whether physical cash or funds in a bank account, is a prime example of tangible personal property.
- Intangible Personal Property: These are non-physical assets that represent value or rights. Their value comes from what they represent rather than their physical form.
- Evidences of debt: This refers to documents or records that prove a debt is owed, such as promissory notes or bonds. The physical paper might exist, but its value is in the obligation it represents.
- Choses (things) in action: This legal term refers to intangible personal property rights that can only be claimed or enforced by a legal action, not by taking physical possession. Examples include:
- Rights to recover a debt or damages in a lawsuit.
- Shares of stock in a corporation.
- Intellectual property rights like patents, copyrights, and trademarks.
Understanding the distinction between personal and real property is crucial in various legal contexts, including taxation, estate planning, sales, and loan collateral. For more detailed definitions and legal insights into this concept, you can refer to authoritative legal resources on personal property.
