Real property — also called real estate, realty, or immovable property — includes land and everything permanently attached to it: buildings, structures, fixtures, fences, driveways, landscaping, and even minerals beneath the surface and air rights above it. It is distinguished from personal property (also called chattels or movable property), which includes items that are not permanently affixed to the land — furniture, vehicles, clothing, equipment, and other movable possessions.
The distinction between real and personal property is fundamental to real estate law and affects multiple aspects of a transaction. Real property is transferred by deed and is subject to recording, title searches, title insurance, property taxes, and zoning regulations. Personal property is transferred by bill of sale, may be subject to sales tax, and is not covered by title insurance or included in the deed.
The gray area between real and personal property involves fixtures — items that were once personal property but have become permanently attached to the real property. A chandelier in a box is personal property; once installed and hardwired, it becomes a fixture (real property). The legal test for whether an item is a fixture generally considers: how it is attached (permanently vs. temporarily), the intent of the person who installed it (was it meant to be permanent?), whether removing it would damage the property, and local custom. Common fixture disputes at closing involve window treatments, shelving, appliances, TV mounts, and outdoor structures.
The purchase agreement should clearly specify what personal property items are included in the sale. Anything not permanently attached — and not specifically listed in the contract — typically stays with the seller. At closing, real property transfers via the deed, while included personal property transfers via a bill of sale.
At Beycome Title, we review the purchase agreement to identify all items included in the transaction and ensure proper documentation for both real and personal property transfers. If there is ambiguity about whether an item is real or personal property, we recommend the parties clarify in writing before closing to avoid disputes. Get your free closing quote.