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 all 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 chattels are chattels. Personal property is also known as personal property. For those of you who like to work on expanding your vocabulary.
Below, let’s look at some examples of personal property, including manufactured homes, plants, crops, and accessory classifications.
prefabricated house is defined as homes that are not built on the site of origin. These are normally trucked in and placed on the property. For those of you parsing the word manufactured and wondering why all homes aren’t considered manufactured, since they are, after all, “manufactured,” think of mobile homes as manufactured. Here is the tricky part, if the manufactured home has been attached to the property then it is REAL property, if it is just there and connected to utilities then it is PERSONAL property. Why would it matter? well, if it’s a REAL property, then property taxes are higher because the government sees 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, that 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 in a home sale because sellers often take their fixtures with them when they move in, and that goes against the agreement in the contract. Knowing what a fixture is will help you understand what to expect to keep with the home and what not to. An accessory is personal property that has been affixed (attached) to the land or building and becomes real estate. Remember that 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 the court will use to decide.
1. Annexation Method – How permanent is the attachment method? Can the item be removed without damaging 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 cabinets, it becomes a fixture.
3. Agreement – Make the parties agree if the thing is real or personal in an offer to buy.
The general rule is to determine, what is the purpose of the accessory? Its function is to be a movable or immovable property.
Business accessories are the exception to the rule. A business accessory is property used in the course of business. Often it will be attached to the property and will resemble real estate. However, if it’s something used as part of the seller’s trade, it’s considered personal property and you don’t get to keep the house.
Often home buyers will be looking for houses and what will attract them to the house will be certain aspects of the house. Fixtures like entertainment centers, backyard gazebos, and surround sound speakers are often considered fixtures and real estate that will remain in the home. However, a homeowner may consider such items to be of great value and may be planning to bring them into their new home. It’s very important to identify what accessories you want and expect to stay in the house and put those items in the purchase agreement so everyone is on the same page and on the same page from the start.