What is the difference between "real property" and "personal property"?

The distinction between real property and personal property is critical in real estate. Real property refers specifically to land and anything that is permanently affixed to it. This includes the physical land, buildings, and structures, as well as any improvements made to the property, such as utility systems and landscaping. Essentially, if something is a permanent fixture that cannot be removed without damaging the property, it is considered real property.

On the other hand, personal property encompasses all movable items that are not permanently attached to the land or buildings. This can include furniture, vehicles, and equipment. Personal property can be easily transported or relocated, which distinguishes it from real property.

Understanding this classification is essential for various aspects of real estate transactions, such as defining what is included in the sale of a property and identifying what items may be removed when a property is sold or transferred. Recognizing these differences also aids in legal considerations, property assessments, and taxation.