By: Joemar Pasco
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Difference Between Real And Personal Property
Yes, it arguably right that anything legally owned can be termed as a property. All owned property falls into two distinct categories: personal property and real property. Personal properties can be further categorized into tangibles, intangibles, and chattels. Typically, a property can be classified as either personal or real property. The difference between the two is usually straightforward. However, sometimes, it’s challenging to categorize properties.
It is crucial to differentiate the two categories of properties to understand what other property agents and lawyers talk about easily. Additionally, categorizing properties will help you know the rules that apply to a particular property and the charges you can encounter in case of violating property rights. The following reasons explain further the difference between these two types of property.
This is anything that is movable and can be subject to ownership expect land. Generally, personal property includes possession of any property, as long those properties are moveable and belong to someone. These properties are not affixed to the land. Sometimes, moveable properties are also referred to as chattels. Some of the chattel laws include all those laws regarding possession of the property, stolen property, lost property, gifted property, and abandoned property.
Tangible property – these are personal properties that can be touched or be felt. For instance, in business, the physical feature includes:
• Office Furniture
• Business vehicles
• Business equipment
• Business goods
An intangible property –, these are owned properties that cannot be felt or touched. For a business, the intangible property includes:
• Intellectual property
It is an owned property that is immovable. It describes the land and anything attached to it, and this is why the land is sometimes referred to as a real estate. However, steel and woods cannot be termed as land in themselves, but when they used to construct a building, they are then said to be real properties. Naturally growing trees and all property permanently attached in the land are identified as real property. However, plants that require human care, such as grains and vegetables, are never considered as real property.
Now that we have understood what personal and real properties are. The next important thing is to know their differences. The following are some differences that can assist you in classifying your properties:
• Personal property can be hidden while the real property cannot be hidden
• In legal settings, both real and personal properties follow different legal procedures
• Real property is immovable, and they are permanently attached to the land. On the other hand, personal property can be transported or taken from one place to another.
• Real properties are long-lasting while personal properties are not necessarily durable
• Real properties are mostly tangible, while personal properties can either be tangible or intangible.
The ranking of personal and real properties has enabled smooth legal procedures. For instance, while buying land, people are more likely to concentrate on what’s underneath the ground, such as minerals and gases. In such a situation, the selling and buying of that property must change.