Definition
Personalty, commonly referred to as personal property, involves any property that can be moved and is not fixed to one location like real estate. Unlike real property, which comprises land and buildings, personalty includes virtually everything else that can be owned, such as cars, electronics, clothing, and household goods.
Personalty can be divided into two categories:
- Tangible Personalty: Physical objects that can be touched and moved, including machinery, vehicles, and furniture.
- Intangible Personalty: Non-physical items, such as patents, trademarks, stocks, and bonds.
Examples of Personalty
- Vehicles: Cars, motorcycles, boats, and airplanes.
- Household Items: Furniture, appliances, electronics, and clothing.
- Business Equipment: Machinery, office desks, computers, and inventory.
- Financial Instruments: Stocks, bonds, promissory notes, and other paper investments.
- Intellectual Property: Patents, trademarks, copyrights, and domain names.
Frequently Asked Questions (FAQs)
Q1: How is personalty different from real property?
- Personalty refers to movable items, while real property pertains to land and anything permanently attached to it.
Q2: Can personalty be converted to real property?
- Yes, through affixation. For example, if you install a built-in appliance permanently into your home, it may become part of the real property.
Q3: What kind of taxes apply to personalty?
- Personal property can be subject to sales tax, personal property tax, or capital gains tax, depending on the jurisdiction and type of property.
Q4: How is personalty protected under the law?
- Personalty laws ensure that personal property rights are recognized and protected. These include theft laws, tort laws, and intellectual property laws, among others.
Q5: Is personalty insurable?
- Yes, specific insurance products, such as personal property insurance or car insurance, are available to cover personalty.
Related Terms
- Real Property: Land and anything permanently affixed to it, such as buildings and structures.
- Chattel: A legal term synonymous with personalty, referring to movable property.
- Fixtures: Items once classified as personalty that are now affixed and considered part of the real property.
- Intangible Property: Non-physical assets such as stocks, bonds, and intellectual property.
Online References
Suggested Books for Further Studies
- “Personal Property Law” by Michael Bridge
- “Understanding Property Law” by John G. Sprankling
- “Principles of Personal Property Law” by Sarah Worthington
- “Personal Property Securities Law” by Hugh Beale
- “Black’s Law Dictionary” by Bryan A. Garner
Fundamentals of Personalty: Property Law Basics Quiz
### What is another term for personalty?
- [x] Personal Property
- [ ] Real Estate
- [ ] Realty
- [ ] Land
> **Explanation:** Personalty is another term for personal property, which includes movable items not fixed to one location.
### Which of the following is NOT considered personalty?
- [ ] Vehicles
- [ ] Furniture
- [ ] Machinery
- [x] Buildings
> **Explanation:** Buildings are considered real property because they are affixed to land, whereas personalty includes movable items.
### Can intangible items be considered as personalty?
- [x] Yes, they can be.
- [ ] No, only tangible items are.
- [ ] It depends on jurisdiction.
- [ ] Only if they have physical forms.
> **Explanation:** Intangible items, such as stocks and intellectual property, are considered personalty even if they do not have a physical form.
### What type of property would a patent fall under?
- [ ] Tangible Personalty
- [x] Intangible Personalty
- [ ] Real Property
- [ ] Fixtures
> **Explanation:** A patent is classified as intangible personalty because it is non-physical.
### How might personal property transform into real property?
- [ ] Through lease agreements
- [ ] By being used continuously
- [x] By being permanently affixed to the land
- [ ] Through exchange contracts
> **Explanation:** Personal property can transform into real property by becoming affixed or installed permanently, such as built-in cabinets or fixtures.
### Which type of tax is commonly associated with personalty?
- [ ] Estate tax
- [x] Sales tax
- [ ] Property tax
- [ ] Income tax
> **Explanation:** Sales tax is often applied to the transaction of personal property items, such as cars or household goods.
### What does the term "fixtures" refer to in property law?
- [ ] Temporary structures on land
- [x] Personalty that has become affixed to real property
- [ ] Movable items within a rental property
- [ ] Legal documents relating to property
> **Explanation:** Fixtures refer to items that were once personalty but are now attached to and considered part of the real property.
### Is an office computer considered personalty?
- [x] Yes, it is considered personalty.
- [ ] No, it is considered real property.
- [ ] Only if it is leased.
- [ ] Only if registered.
> **Explanation:** An office computer is considered personalty, as it is movable and not affixed to real estate.
### What fundamental legal principle protects personalty?
- [ ] Tax codes
- [ ] Real estate laws
- [x] Property rights
- [ ] Lending regulations
> **Explanation:** Property rights ensure that personalty is recognized and protected under the law.
### Insurance for personalty may cover which event?
- [x] Theft of an item
- [ ] Structural damage to a home
- [ ] Decline in real estate value
- [ ] Natural wear and tear
> **Explanation:** Personalty insurance often covers losses such as theft, providing protection for movable items.
Thank you for studying the comprehensive details on personalty and tackling our fundamental quiz questions. Continue to expand your knowledge in property law!
