In a real estate transaction, there can often be confusion as to to the difference between real estate and personal property when writing up a purchase agreement.

Real Esate

Real Estate, also known as real property , includes land and any permanently attached additions, such as houses and other buildings. Items that are permanently affixed to these structures, either directly or via pipes, wires, or nails, are also included. Examples extend beyond the obvious to include items like windows, doors, and built-in appliances, attached curtains, cooling and heating systems, built-in appliances, big screen TV’s attached to the wall and docks if attached to the ground.

Personal Property

Personal property refers to items that can be moved easily from place to place without altering the property’s character. This category includes tangible, movable objects not permanently affixed to real estate. It’s often defined by the method of attachment and the intention to keep the item movable. Examples may include docks on wheels, portable heating and cooling units, garden equipment, small buildings on skids and furniture not attached to a wall or the floor.

Appliances

Appliances highlight a common, and avoidable, area of confusion. Those built-in or otherwise permanently attached to the property’s electrical or plumbing systems are generally considered fixtures. However, freestanding items that plug into outlets and can be easily moved without installation work are seen as personal property.

Bill of Sale

In a real estate transaction some personal property is often incuded in the sale and this can be transferred via a Bill of Sale that becomes part of the purchase agreement and is tied to the property sale closoing and being sold.