If you are studying for the real estate exam, it is likely you will run into questions regarding personal property vs real property.
The biggest difference between the 2 is immobility. Personal property can be easily transferred while real property can't be moved.
The most obvious example of a real property is your real estate property. The house you own, the building you own, the land you own are all real properties. Anything else that are connected with houses and can not be independently used are also considered real properties, such as the house key, garage door opener. These 2 items can only be used to open the door of a particular house, therefore even though the items are movable, it has to go with this property or it has no values.
Personal property on the other hand, are your personal items: cars, clothes, appliances, furniture and so on.
A real property can become personal property. For instance, the minerals and gems underneath your house are real properties before being mined. After the mining company gets those gems out from the earth, it becomes the diamonds, the sapphires you see on the market, which then becomes personal property.
Personal property can also become real property. For instance, the building materials you get from home depots are personal properties. After you mount these items and it becomes a fixture of your house, it then becomes part of the house, then real property.
Knowing what's real property, what's personal property will help you understand what items are expected to come with the house upon purchase and what won't. If you come across an expensive Picasso painting in your open house, don't expect the paint will stay when the seller leaves. On the other hand, the curtains are always going to stay as part of the house because a house can not exist without curtains due to the emphasis of privacy right in America, hence making it real property.
Some of the other items, such as certain fixture or sign boards that are mounted on the property can be detached. Are those real or personal property? Well, you will have check with the owner on the intent of having such items. If the intent is to have it as personal property because the sign board is needed as long as the owner runs his business here and he will take it with him when he moves his business somewhere else, then it is personal property.
Other than that, most of the items are pretty clear as whether its personal or real property.
So exam questions for you readers:
Are real properties generally more expensive than personal properties?
Are mobile homes real properties?
The biggest difference between the 2 is immobility. Personal property can be easily transferred while real property can't be moved.
The most obvious example of a real property is your real estate property. The house you own, the building you own, the land you own are all real properties. Anything else that are connected with houses and can not be independently used are also considered real properties, such as the house key, garage door opener. These 2 items can only be used to open the door of a particular house, therefore even though the items are movable, it has to go with this property or it has no values.
Personal property on the other hand, are your personal items: cars, clothes, appliances, furniture and so on.
A real property can become personal property. For instance, the minerals and gems underneath your house are real properties before being mined. After the mining company gets those gems out from the earth, it becomes the diamonds, the sapphires you see on the market, which then becomes personal property.
Personal property can also become real property. For instance, the building materials you get from home depots are personal properties. After you mount these items and it becomes a fixture of your house, it then becomes part of the house, then real property.
Knowing what's real property, what's personal property will help you understand what items are expected to come with the house upon purchase and what won't. If you come across an expensive Picasso painting in your open house, don't expect the paint will stay when the seller leaves. On the other hand, the curtains are always going to stay as part of the house because a house can not exist without curtains due to the emphasis of privacy right in America, hence making it real property.
Some of the other items, such as certain fixture or sign boards that are mounted on the property can be detached. Are those real or personal property? Well, you will have check with the owner on the intent of having such items. If the intent is to have it as personal property because the sign board is needed as long as the owner runs his business here and he will take it with him when he moves his business somewhere else, then it is personal property.
Other than that, most of the items are pretty clear as whether its personal or real property.
So exam questions for you readers:
Are real properties generally more expensive than personal properties?
Are mobile homes real properties?
