Real Property vs. Personal Property
Definition
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Example
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.
Exam Tip
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 Ownership Terms
Bundle of Rights
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
Freehold Estate
A freehold estate represents ownership of real property with an indefinite duration.
Leasehold Estate
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
Life Estate
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Water Rights: Riparian and Littoral
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
Types of Estates: Freehold vs. Leasehold
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
Frequently Asked Questions
Test Your Ownership Knowledge
Practice with exam-style questions to make sure you can apply Real Property vs. Personal Property and other ownership concepts.