Which of the following terms describes the process of real property becoming personal property?
The previous chapter explained that property often is described as a bundle of legal rights. This chapter explains that 1) property is categorized or real property or personal property, 2) some tangible property can transition between the two categories of real and personal property, and 3) property does not have to be tangible, but instead is based on the abstract concept of legal rights. Show
. Our legal system categorizes property into several broad classifications. This section of the course introduces these property categories. . Property CategoriesReal property-- the surface of the land, the soil, the minerals within the soil, the airspace above the surface, and items that are part of the land, such as trees.
.
.
. Personal property -- all movable items such as vehicles, books, pencils, clothing, and livestock.
Apparently, there are the two major categories of property -- real and personal; that is, if it is not real, it is personal. . Why distinguish between personal property and real property?
. Issues that arise in applying the concepts of real and personal propertyAlthough the definitions of real and personal property appear to be relatively simple, issues arise because property can change categories. For example, personal property can become part of real property (a board is used to construct a building) or real property can become personal property (crude oil can be pumped from the ground). This discussion addresses the issues that arises as property transforms from one property category to the other. Fixture -- personal property that has been attached to the land; e.g. buildings. The individual brick or board was personal property when it was manufactured, but once it is incorporated into the building and the building is considered part of the land (see the definition of real property), the brick or board has become part of the real property. Clearly, an item can shift between being personal property and real property.
Severed properties -- real property that has been detached from the land; it has become personal property; e.g., cutting a tree and processing it into lumber. A growing tree is real property; the lumber made from the tree is personal property. Somewhere in the process of harvesting the tree, it shifted from being real property to become personal property. At what point does that shift occur?
. Intangible PropertyOur examples of property have been items we can touch -- boards, trees, the soil, a brick, an automobile, and the list goes on. There also are property rights that do not pertain to something we can touch or see. Intangible property -- (always personal property) -- includes bonds, stock, goodwill, certificate of deposit, an obligation or payment that someone owes you (e.g., N.D.C.C. §47-30.1-01(9)).
.
Summary of Key Points
The next page introduces Estates in Property. What is real properties and personal properties?Generally, “real property” is real estate. It includes the land and any permanent improvements to the land like buildings, fences, landscaping, driveways, sewers, or drains. “Personal property” is all property that is not real property like automobiles, livestock, money, and furniture.
What term describes a personal property item that has been converted to real property by attachment to real estate a feature a component a fixture a fitment?What term describes a personal property item that has been converted to real property by attachment to real estate? A fixture.
Which of these is the best definition for personal property?Everything you own, aside from real property, is considered personal property. This includes material goods such as all of your clothing, any jewelry, all of your household goods and furnishings, and anything else that is movable and not permanently attached to a fixed location such as your home.
What are some examples of personal property?Personal property can be characterized as either tangible or intangible. Examples of tangible personal property include vehicles, furniture, boats, and collectibles. Stocks, bonds, and bank accounts fall under intangible personal property.
|