Personal Property
Personal property refers to movable items that are not permanently attached to real estate, such as furniture, appliances, artwork, and vehicles. Unlike real property (land and buildings), personal property can be relocated and is generally not included in real estate transactions unless specifically negotiated.
Example
“The washer and dryer were considered personal property and were not included in the home sale.”
Memory Tip
Think 'personal items you pack' - personal property is what you can pack up and take with you.
Why It Matters
Clearly distinguishing between personal and real property prevents disputes during property sales about what items are included in the purchase price.
Common Misconception
Buyers often assume that attractive fixtures like chandeliers or appliances automatically convey with the house, but sellers can remove personal property unless it's specified in the contract.
In Practice
During a home sale negotiation, the buyers request that the sellers include the refrigerator, washer, and dryer in the purchase agreement since these appliances are considered personal property and wouldn't automatically transfer with the house.
Etymology
The term 'personal' comes from Latin 'personalis' meaning 'of a person,' distinguishing movable belongings from fixed real estate.
Common Misspellings
Compare today's mortgage rates
More in real estate
Other real estate terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.