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What is real property?

QUESTION:

When we bought our home in Cape Coral, I heard the terms real property and personal property used by the real estate agents and on the contract. I am pretty sure I understand the differences between these terms, but could you go over the definitions of each?

ANSWER:

Certainly, I would be happy to explain these terms. The word "property" by itself is defined as "something of which there may be ownership." And "ownership" is defined as "the right of one or more persons to possess and use it (property) to the exclusion of others."

Property is divided into two classes, namely, "real" or "immovable" property and "personal" or "movable" property.

Real property consists of the land and anything which is affixed to the land or which is considered immovable by law.

Personal property is defined in a negative way. In other words, any that is not real property is personal property.

Sometimes real property or personal property may be changed into another class of property. For example, land in place is immovable and is called real property. But when it is severed from the earth, i.e., when a load of gravel or soil is removed from a parcel of ground, it becomes movable and therefore personal property. By the same token, personal property becomes a part of land and becomes real property when it is attached with the intention of making it a permanent part of the land.

The distinction between real and personal property is an important one when considering the legal aspects. Real property is a fixed, immovable and permanent thing. Personal property is easily moved from place to place and is regarded as something impermanent or transient. These physical differences have resulted in different rules of law regulating their ownership.

Real property is exclusively subject to the laws and jurisdiction of the state in which it is located. Personal property, however, is usually treated as being situated at the domicile of its owner regardless of the actual location of the property and is governed by the law of the owner’s domicile.

The distinction between real and personal property is also important as to method of transfer and the requirements as to recording. Real property may be transferred only by an instrument in writing which must be recorded in the county’s public records in order to put others on notice of one’s claim to ownership.

Title to personal property, on the other hand, may be transferred. It will generally pass by delivery of possession, and no recording is required. A written instrument such as a bill of sale may be used to provide warranty of title protections to the buyer.

This information is not intended as specific legal advice to anyone and is based upon facts that change from time to time. Individuals should seek legal counsel before acting upon any matter involving the law.

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