Definition:
Personal property refers to movable items owned by an individual that are not permanently attached to a home or land. Unlike real property, personal property typically doesn't come with the house unless specifically included in the sales agreement.
Example:
When Alex sells his home, the furniture, electronics, and appliances (like his refrigerator or washer and dryer) are considered personal property. Unless Alex specifically agrees to include these items in the contract, he takes them with him when he moves.
Explanation:
In real estate transactions, understanding the difference between real property (the home and things permanently attached, such as cabinets or built-in fixtures) and personal property (movable items like furniture, appliances, or decorations) is crucial. Typically, personal property is excluded from the sale unless explicitly listed in the sales contract.
If a buyer wants certain personal property items included—like appliances, curtains, or a lawnmower—they must clearly specify those items in the written agreement. Otherwise, sellers are free to remove these items at closing.
Real estate agents and buyers often negotiate around personal property, especially if the items enhance the home’s value or convenience. Including items like a refrigerator or washer/dryer can make a home more attractive to buyers.
Why is Personal Property Important in Real Estate Transactions?
Personal property is important because clarity around what stays and what goes prevents confusion, disputes, and unexpected costs at closing. Buyers benefit from clearly defining personal property to ensure they receive everything they expect, making the move easier. Sellers avoid misunderstandings and conflicts by specifying exactly which personal items will remain. Accurate handling of personal property makes the transaction smoother, protects both parties and ensures everyone is satisfied with the final sale.