Any property that is associated with the land known as real property. In fact is an immovable property. Therefore buildings, vacant land, land with mineral deposits can be termed as real property. Number of property laws according to region will monitor the real properties. The land and any sort of immovable improvement also called as real property. It means any mineral or oil rights which generate income from such real property also termed as real property. The real property may be rental or residential and includes buildings, structure, rights and interests.
On the other hand, the personal property differs from real property. Purely, the personally property is movable property. Personal property is private property and it is opposed to real property. Furniture, clothing, jewellery, household goods are some of the examples of the personal property. The personal property may be tangible or intangible. Patents and copyrights are intangible personal properties. Besides, living things can be considered as personal property. Live stocks and plants also come into the category of personal category.
The real property is in nature of permanent and immovable. Whereas the personal property refers movable property. A house built on residential lot is a real property and the furniture used in house is known is personal property. Personal property may be any property except the real property. So farmhouse is real property and livestock will be personal property. For proper valuation and tax purposes, the property must be identified as real or personal property. Real estate also considered as real property, realty etc. Asset is fixed in permanent nature in case of real property, but no such fixed and permanent nature not exists with personal property.
While purchasing the real property, the buyers must be aware that purchase real property passes to the buyer whereas personal property will go with the sellers. If buyer interested with the personally property, during the negotiation stage itself such personal property should be included as part of sale of agreement subject to consent of both parties. In legal system, the real and personal property is governed by property laws. In case of civil law legal system, distinction is provided based on immovability.
The clear distinction is that personal property associated with movable property and real property linked with the immovable property. Since the personal property is movable, it will be more difficult to secure loans from the financial institutions. The banks always desire to provide loans by securing immovable properties but not on movable properties.