Real Property vs Personal Property

A common question potential buyers tend to ask their real-estate agents is, "Is this item included in the purchase"? Well, although it may seem like a simple question, in the real-estate world it extends far beyond that.

When a buyer walks into a home, it is very possible that they will assume certain appliances will stay, all light fixtures will also remain and lets not forget window treatments. Unless otherwise noted in the contract, for the most part they are correct. When a home is shown to a potential buyer all items of sentimental value to the seller should be out of sight. Because once a potential buyer sees a beautiful chandelier in the dining room, even though that chandelier may have come from the seller's late grandmother, it is highly likely they will want it included in the purchase or they will not be making an offer. Generally, anything that is affixed to the property stays without a provision in the contract stating otherwise.

Sellers tend to think that when they are setting the stage for a potential buyer and choosing what furniture stays and what goes, they get to choose what stays and what goes. If it is movable and you want it there for the open house that is fine. But, again, if it is a fixed item (real property), it needs to be replaced if you plan on taking it with you to your next home.

As a general rule, real property stays with the home and personal property goes with the seller.

Real Property - Is immovable (stays with the property). It is the earth's surface that goes from the center of the earth and up into space. It also includes permanently attached items by people or nature, and inherent to its ownership, the benefits, rights and interests. Examples of real property are: Trees and shrubs (perennial plants), ceiling fixtures, chandeliers, attached appliances and anything else fixed to the property.

Personal Property - Is movable (goes with the seller). Another term you may hear used for it is chattels. It includes movable items such as stocks and bonds, furniture, annual flowers and plants and growing crops (emblements), clothing, money, leases and mortgages. Personal property, however, can become affixed to real property and be immovable. An example would be carpeting. Before the carpet is put down in the house it is personal property, but when it becomes affixed it is now real property.

So remember, if you are selling your property and there are items that are fixed and you would like to keep them, they must be removed and replaced with one of less value to you. However, you can keep them on the property and state in the contract your request. And for the buyer, don't be afraid to ask your agent what is staying and what is going. Sometimes, items the seller wants to keep could become a good bargaining tool for the potential buyer.