Personal Property 101

Real property includes land and everything attached to it, whether natural or man-made. This includes homes, garages, buildings and other structures. It also covers ponds, gardens and other amenities like this. Real property is inherently permanent in nature, which sets it apart from personal property. Generally, it cannot be moved from one location to another.

Land

Land is a specific area of the Earth with clearly defined boundaries and has an owner. It also includes all the natural characteristics bestowed on a piece of land such as the landscape, fields, trees, minerals, atmosphere, animals and bodies of water. However, land is not a synonym for real property which is a broader term that refers to everything included in the definition of land plus the interests, benefits and rights inherent in ownership of the land. The value of a piece of land depends on its location, climate, size and condition. It may contain valuable natural resources such as oil and gas which can increase its valuation. Companies often invest in land for development that can serve commercial or residential purposes subject to zoning ordinances and local regulations. Developing land can be costly and risky but can produce substantial future cash flows that are easy to predict once the land is secured. Land typically appears on a company’s balance sheet under the heading of Property, Plant and Equipment. Find out more by visiting sellmyhousefastmiamifl.com!

Fixtures

Once a piece of personal property becomes permanently affixed to real estate, it loses its chattel-like character and is considered a fixture. Lumber, drywall and concrete all fall into this category. Fixtures are usually included in a sale of land or buildings unless specifically agreed to the contrary in a contract of sale. However, determining what is and isn’t a fixture can sometimes be a source of dispute. For example, curtain rods attached above windows are generally considered fixtures, while drapes are not. Determining whether something is a fixture can be difficult and varies based on several factors, including how it was attached, its adaptability to the property and whether its removal would cause damage. Detailed agreements and clear communication between homeowners and real estate agents can help avoid disputes over what’s included in a sale. Ultimately, the law determines what is and isn’t a chattel or a fixture.

Personal Property

Unlike real property, personal property can be moved from one location to another. Also called chattels or personalty, it includes movable belongings and intangible assets with a legal value. Tangible personal property, for example, is a common subject of ad valorem taxes levied in most states on cars, furniture, jewelry and household goods, as well as business equipment. Some states require that a tax be charged on all tangible personal property unless permanently affixed to real property. This is often used to encourage new investments in manufacturing and attract businesses whose assets may move between locations. To calculate the value of personal property, make a list of all items in your possession. Research the current market price of similar items on online marketplaces and classified ads, and consider consulting appraisers for high-value items like artwork, antiques or collectibles. Also, create an inventory of the condition of your personal property to ensure it is protected from loss or theft.