What is the difference between “real property” and “personal property”?

The correct answer highlights the fundamental distinction between real property and personal property based on their nature and permanence. Real property consists of land and anything that is permanently affixed to it, such as buildings, fixtures, and improvements. This permanence is key; real property does not change location and is considered an integral part of the land itself.

On the other hand, personal property refers to movable items that are not attached to the land or buildings. These can include furniture, vehicles, equipment, and other possessions that can be relocated without causing damage to real property. This distinction is crucial in many areas of real estate and law, including taxation, legal ownership, and transfer of ownership rights.

Understanding this difference is important for anyone working in real estate, as it impacts how properties are assessed, valued, and sold.