Property: we all own a piece of some kind. From household items to the house itself, almost any physical item is a piece of property of some sort.
But there is an important distinction in the law between different types of property. There are two main categories of property: personal property and real property. While an individual typically possesses both, there is a big difference between the two, especially regarding how the law treats these two types of property.
Real Property
Real property can most easily be defined as “the land, everything that is permanently attached to the land, and all of the rights of ownership, including the right to possess, sell, lease, and enjoy the land. In addition, real property can be classified according to its general use as residential, commercial, agricultural, industrial, or special purpose.” Within this category are land and real estate.
The land is defined as the earth’s surface down to the earth’s center and up above the earth into infinity (and beyond!). It also, of course, includes all-natural things that are attached to the earth: trees, water, mountains, and so forth.
Real estate includes natural fixtures and, unlike land, includes man-made fixtures as well: buildings, houses, fences, etc.
Personal Property
Personal property includes assets that do not fall within the “real property” category. Instead, personal property is often known as “movable property” and consists of all different items: appliances, clothes, cars, furniture, and so forth. However, the biggest distinguishing factor between personal property and real property is movability: the personal property is movable, meaning that it is not permanently fixed to one location.
This category can further be broken down into two more categories: tangibles and intangibles. Tangible items are things that you can touch: physical items. Intangible items are things such as stocks, bank accounts, and even intellectual property.
Why Does it Matter?
Distinguishing real and personal property is important mainly because these types of property are taxed differently. Real property is typically taxed, while personal property may not always be subject to taxation depending on the item itself. Moreover, even if both types are taxed, different taxation laws apply depending on the property’s classification as either real property or personal property.
There’s a Lawyer for That?
Property lawyers can help provide their clients with sound legal advice regarding issues regarding real estate and other property. These types of lawyers are also equipped to help you classify your property accordingly and help with issues that may arise in the possession and use of your property. Laizure Metz Legal Services specializes in property-related matters and can assist you in all types of property disputes. For assistance, contact Laizure Metz Legal Services at christopher@laizuremetzlegal.com or (347) 625-7854.