Personal Property
Definition and meaning of Personal Property in real estate.
Personal property is any movable asset that is not permanently attached to land or a building, also referred to as chattel. In a real estate transaction, these items are owned by the seller and do not automatically transfer to the buyer.
In more detail
Distinguishing between personal property and real property is a common point of negotiation during home sales. Items such as furniture, freestanding appliances, rugs, and drapes are classified as personal property and are typically taken by the seller upon moving. If a buyer wishes to keep certain pieces of personal property, they must explicitly write them into the purchase agreement.
Conversely, if a seller leaves unwanted personal property behind without permission, the buyer may request removal or compensation at closing. Disputes over these items are often resolved by applying legal tests that evaluate how securely an item is attached and whether it was custom-made for the space.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Chattel or personalty |
| Transfer document | Bill of sale (rather than a deed) |
| Tax treatment | Generally not subject to real estate property taxes |
A buyer submits an offer on a house and specifically requests that the seller include the freestanding dining room set and the matching sideboard as part of the sale.
Frequently asked questions
How is personal property officially transferred during a home sale?
Personal property is transferred using a bill of sale, which is a separate document from the property deed that transfers the actual real estate.
What happens if a seller leaves personal property behind after closing?
If the contract does not address it, the buyer can request the seller to remove the items, ask for a credit, or, in many states, dispose of the items after a set period.
Related terms
Sources & references
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