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.
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.
Real Property vs. Personal Property is tested in the Property Ownership section of the real estate exam. Questions typically present a scenario and ask you to apply the concept. Here are examples of how exam questions are phrased:
A beneficiary deed in Arizona:
Which statement is TRUE regarding a life estate?
An estate in land vested in a grantee “until she marries” is properly classifiable as
Practice with all 10 related questions below to build confidence in this topic area.
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
Practice Questions
A beneficiary deed in Arizona:
Which statement is TRUE regarding a life estate?
An estate in land vested in a grantee “until she marries” is properly classifiable as
In a physical sense, real estate may be said to include everything EXCEPT
Riparian rights are those rights possessed by
A landowner who sells a one-acre farm must
The loss of one’s real estate by the gradual wearing away of soil through the operation of natural causes is
The sale of real estate under a conditional installment sale gives the buyer (vendee):
Recording of deeds in Nevada is done at the:
In Ohio, which deed provides the greatest protection?
Related Concepts
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
Frequently Asked Questions
Study This in Your State
Real Property vs. Personal Property may have state-specific rules. Choose your state to study Property Ownership with localized content: