In California, property law distinguishes between two main types: real property and personal property. Real property refers to land and anything permanently attached to it, like homes or buildings (Civ. Code § 658). When people think of property, they often picture a house or a piece of land, but there’s more to the story. Personal property, on the other hand, includes movable items—anything from patents and furniture to crops and underground plumbing.
These categories are crucial, especially when selling or transferring property. For example, what can a seller take with them, and what stays with the buyer? Navigating these details can be tricky, and having the right legal guidance is key. At Stone & Sallus, our experienced real estate attorneys are ready to help you understand the complexities of property law and protect your interests every step of the way.
The Difference Between Real Property and Personal Property
At its core, the difference between real and personal property is straightforward. Real property is land and anything attached to it, while personal property refers to movable items. For example, a house on a plot of land is real property, while the furniture inside is personal property.
What is Real Property?
Real property refers to land and anything permanently attached to it. This includes structures like homes, office buildings, and other improvements made to the land. Real property isn’t limited to the surface of the land either; it can also include the air above and the ground below, such as mineral or water rights.
Types of Real Property:
- Residential properties
- Commercial properties
- Industrial properties
- Agricultural land
Characteristics of Real Property:
- Immovable
- Long-term in nature
- Can be sold, leased, or inherited
- Comes with legal rights (such as air and mineral rights)
In California, real property is subject to property taxes, zoning laws, and specific regulations that govern its use and transfer. The state has distinct laws governing the sale, lease, and development of real estate (California’s Civil Code).
What is Personal Property?
Personal property refers to movable items that are not permanently attached to land or structures. Unlike real property, which is immovable, personal property includes everything from household goods like furniture and appliances to vehicles, jewelry, and even intangible assets such as stocks or patents. Under California’s Civil Code, personal property is broadly defined to include “everything that is the subject of ownership, not forming part of any parcel of real property” (Civ. Code § 663).
Types of Personal Property:
- Tangible personal property (e.g., furniture, vehicles)
- Intangible personal property (e.g., stocks, bonds, intellectual property)
Characteristics of Personal Property:
- Movable
- Short-term or consumable in nature
- Can be easily transferred or sold
- Generally depreciates in value over time
According to California’s Civil Code, personal property is typically not subject to property taxes, but sales tax may apply when it’s sold. In legal disputes, personal property is treated differently from real property, often with fewer regulations attached.
Can Personal Property Become Real Property?
Yes, personal property can become real property. This happens when personal items are permanently attached to land or a building, like a built-in fridge or custom cabinetry.
Factors that determine this:
- Manner of annexation: How was the item attached? Is it permanent?
- Adaptability: Does the item serve a purpose related to the property, like a central air conditioning unit?
- Intention: Did the property owner intend for the item to be part of the property?
Navigating Ownership Between Real and Personal Property
There are legal and practical issues with real and personal property, especially during disputes. For example, when selling a property, a common question is do certain fixtures (like light fittings) stay with the property or are they personal property. These issues need clear contracts and sometimes an experienced lawyer such as Stone & Sallus.
Are Crops Real Property?
Yes, crops are considered real property under California law, but this distinction can depend on whether they are naturally growing or harvested. Crops rooted in the ground (like vineyards or orchards) are considered real property until they are harvested, at which point they may become personal property.
This matters because the classification of crops can affect property sales, tax obligations, and land usage agreements, particularly in agricultural transactions.
How Stone & Sallus Can Help
As experts in real estate law, Stone & Sallus can help you navigate the complex world of property ownership in California. Here’s some ways in which we can assist:
- Resolve disputes: Whether it’s between buyers and sellers or landlords and tenants.
- Clarify contracts: Ensure that agreements clearly define what constitutes real vs. personal property.
- Facilitate transactions: Smooth the buying, selling, or transferring of property.
- Estate planning: Help you manage the distribution of both real and personal property through wills and trusts.
If you’re facing any challenges related to property ownership or transactions, contact Stone & Sallus today for expert legal guidance. Our team is here to make sure your interests are protected every step of the way. Reach out now for a consultation.
