Personal property refers to movable items not permanently attached to land or structures. Unlike real property—land and fixtures such as built-in appliances or custom cabinetry—personal property can be removed without damaging the real estate. It includes tangible assets (furniture, electronics) and intangible assets (stocks, bonds).
Identifying personal property helps avoid disputes at closing. Buyers need clarity on what’s included, sellers must know what they can take, and agents must draft contracts that precisely list inclusions and exclusions.
Definitions of personal property vary by jurisdiction. While the core principle—movable vs. permanent—remains consistent, state statutes may affect tax treatment, transfer methods and record keeping.
Sofas, beds, chairs, plug-in refrigerators, microwaves and other appliances not built into cabinetry are personal property.
Framed paintings, drapes, blinds, mirrors and other wall-mounted or hanging items are removable unless the contract specifies otherwise.
Lawn mowers, portable sheds, power tools and outdoor playsets are personal property and generally excluded from a real estate sale by default.
Court cases often hinge on three factors: attachment (is it affixed?), adaptation (is it custom-fitted?) and intention (was it meant to be permanent?). If the answers point toward permanence, the item is likely a fixture (real property).
Hardwired dishwashers and built-in ovens are fixtures, while plug-in microwaves and portable ice makers remain personal property.
Items like smart thermostats, wall-mounted TVs or custom shelving may be fixtures if removal damages the property or requires professional detachment, unless the parties agree otherwise.
Removing personal property can affect comparables and appraisals. Lenders underwrite the value of real property separately from personal items, so clarity prevents financing delays.
Real property is taxed through property taxes and covered by homeowners insurance, while personal property often requires separate endorsements or policies (jewelry, electronics).
Detailed contract provisions listing included personal property reduce the risk of post-closing disputes and potential liability for sellers and buyers alike.
Use an addendum or schedule to itemize each piece of personal property—appliances, rugs, window treatments, tools and décor—that will convey with the sale.
Leases should specify whether items like washers, dryers, office furniture or landscaping equipment remain with the landlord or tenant at lease termination.
Incorporating inventories, dated photos and signed addenda into contracts protects both parties by creating a clear record of what’s included.
Sellers sometimes remove items buyers expect—garage door openers, blinds or garden tools—leading to last-minute disputes and potential escrow holds.
Buyers may seek damages or specific performance if promised personal property is removed. Remedies include claims in small claims court or injunctions before deed transfer.
Final inspections and walk-through checklists verify that all agreed personal property items remain. Escrow holds can secure disputed items until resolution.
Some states include intangible rights in personal property definitions, while others focus solely on tangible goods. Professionals must reference local statutes for accurate classification.
Brokers use standard clauses, attorneys ensure legal compliance, and title companies check for liens or encumbrances that could attach to personal property.
Separating real from personal property affects asset division, valuation and transfer methods in estates, probate and divorce proceedings.
Alice’s contract stated that the washer, dryer, custom drapes and garden tools would remain. After closing, Bob removed the drapes and portable greenhouse.
Alice’s agent added an itemized inventory addendum listing each appliance, piece of décor and yard tool. Bob initialed the list during contract negotiations.
With a signed addendum and a final walk-through checklist, Alice confirmed every item before funding. Clear documentation prevented disputes and ensured a seamless closing.
