When it comes to real estate, there are two main types of property: real property and personal property. Real property is the land and anything attached to the land, while personal property is anything else, typically things that can be moved.
The distinction between real and personal property is important for various reasons. For example, real property and personal property are subjected to different taxes. Also, how personal and real property are treated is also different. It is important to know these differences, and this is the topic of discussion today. I will also be covering community property, and how that factors in with real and personal property. Louisiana is a community property state, 1 of 9 community property states.
Let us take a closer look at some following examples of Real Property:
- Land
- Buildings
- Crops
- Fixtures
- Mineral rights
- Air rights
Real property is considered to be a permanent fixture, meaning that it cannot be moved without destroying it. For example, a house is considered real property, even if it is built on a foundation that can be moved. Things that are attached are real property, things that can be moved is personal property.
Now let us take a closer look at Personal Property:
- Cars
- Jewelry
- Clothing
- Tools
- Money
- Furniture
Now that you have a better understanding of real property vs. personal property, let us talk briefly about community property, and why that matters. This is where things can get a little confusing.
In community property states, the laws behind community property states that a married couple owns everything 50/50. An exception to this rule is if one of the spouse’s had something gifted to them. So say in their parents will, they have that the wife is being gifted their parents home. The home would then be owned by the wife and not the husband. Now if they were to rent out the property, the income generated from the home, is now considered community property. The husband is now entitled to receive his half of the income. I don’t want to go to0 deep into detail, because this is a very complex subject and I am no lawyer. Any and all legal questions like community property, should be talked with to a lawyer. Agents do know all the real estate laws, because we are required to know them, so we don’t commit any violations, but we certainly can’t go into great detail.
Alright, time to end with a funny real estate joke!
Question: How did the real estate agent handle the rude client?
Answer: He showed her some manors.
Alexander Kroening- REALTOR 