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
Joint Tenancy
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
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
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
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
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.
Cooperative Ownership
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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.