Real vs. Personal Property

One of the most considerations is the division between “real property” and “personal property”. We will spend most of our time in this book on real property, but it is important to be aware of some concepts concerning personal property, as well.

The meaning of the term “real property” is broad. According to Indiana law, “real property” (here called “land”) is:

[A]ny ground, soil, or earth whatsoever, as meadows, pastures, woods, moors, waters, marshes, furzes, and heath. It has also in its legal signification an indefinite extent, upwards as well as downwards. The word land is comprehensive in its import, and includes many things besides the earth we tread on, as waters, grass, stones, buildings, fences, trees, and the like.[1]

Remember, however, that when paralegals and lawyers consider “real property,” they should consider it not just as the thing itself, but as a bundle of legal relations.

On the other hand, “personal property” is property with a “personal or movable nature as opposed to property of a local or immovable character.”[2] Personal property may also be termed “chattels” or “personalty,” depending on properties such as jurisdiction and age of the document in question. So, for example, cars, pizzas, dogs, and stock certificates are all considered to be “personal property.”

[1] Owens v. Lewis, 46 Ind. 488, 508 (1874)

[2] Lowrance v. Lowrance, 95 Ind. App. 345, 182 N.E. 273, 277 (1932)