let’s take a look at personal property how does it compare to royal property. This is a topic that comes up a lot when a real estate transaction gets complicated and the two parties (buyer and seller) start arguing about what stays in the house and what doesn’t according to the contract and the law.
personal property is defined as any property that can be owned and does not meet the definition of real property. In other words, if it is not real property, then it is personal property. An important distinction between the two is that chattel is chattel. Personal property is also known as personal property. For those of you who like to work on expanding your vocabulary.
Next, let’s look at some examples of personal property, including manufactured homes, plants, crops, and accessory classifications.
prefab house is defined as housing that is not built on the site of origin. These are normally trucked in and placed on the property. For those of you looking at the word manufacturing and wondering why all homes aren’t considered manufactured, since they are “manufactured” after all, think of mobile homes as manufactured. Here’s the tricky part, if the manufactured home has been attached to the property then it’s REAL property, if it’s just there and connected to utilities then it’s PERSONAL property. Why would it matter? well, if it’s REAL property, then property taxes are higher because the government sees the houses as essentially adding value to the land they sit on.
Plants and Crops: There are two categories here and both have their differences. Trees, perennials, shrubs, and grass that do not require annual cultivation are considered real or immovable property. And these are transferred with the sale of the property. Crops, on the other hand, which are harvested annually, are considered emblems. Or personal property and in the sale of the property, the crops that are being produced stay with the seller for that current crop.
Here are some additional details… if an item on the land, say a tree (which is real property) is cut down and separated from the land (called a detachment), then it becomes personal property. It is also possible to do the same but in reverse. If the tree that was cut down is used to build a house on the property, through annexation, it becomes real property.
Accessories – these are often the hot topic when selling a home because sellers often take their accessories with them when they move, and that goes against the agreement laid out in the contract. Knowing what an accessory is will help you understand what to expect to keep in the home and what not. An attachment is personal property that has been affixed (attached) to the land or building and becomes real estate. Remember that the real estate stays with the house when it is sold.
How do you prove if an item is an accessory or personal property? Here are the three basic tests that the court will use to decide.
1. Method of Annexation – How permanent is the method of attachment? Can the item be removed without damaging the surrounding property?
2. Adaptation to Real Estate – Is the item used as real property or personal property? For example, a refrigerator is typically considered personal property because it can be easily removed. However, if the fridge has been adapted to match the kitchen furniture, it becomes a fixture.
3. Agreement – Make the parties agree if the thing is real or personal in a purchase offer.
The general rule is to determine, what is the purpose of the accessory? Its function is to be a personal property or an immovable property.
Trade fixtures are the exception to the rule. A business fixture is property used in the course of business. Often it will be attached to the property and will resemble real estate. However, if it is something used as part of the seller’s trade, it is considered personal property and you do not keep the house.
Often homebuyers will be looking for homes and what will attract them to the home will be certain aspects of the home. Accessories such as entertainment centers, backyard gazebos, and surround sound speakers are often considered fixtures and real property that will remain in the home. However, a homeowner may consider these items of great value and may be planning to bring them to their new home. It’s very important to identify what accessories you want and expect to stay in the house and put those items on the purchase agreement so everyone is on the same page and on the same page from the start.
