blueridge reports

Blue Ridge Real Estate

Personal Property vs. Real Property

What is the difference between personal property and real property? Personal property is all of the items in and about your house that you take with you when the house sells and you move. Real property is everything that will stay.

Seems easy, right? Of course I will take the curtains that my grandmother made as a wedding present. Not so fast. Sometimes the difference between personal property and real property is the expectations (sometimes opposing) of the two parties in question: you and the buyer.

The general rule of thumb for things on the wall is that anything that will leave a substantial hole (larger than your average nail) in the wall if taken should stay. But what if you want that big entranceway mirror that has been in your family for generations? Must you be forced to give up a valuable possession? And what about the light fixture that you saved up to buy? Must that stay? Must you never put it up for fear that someday you will move and will be forced to give it up?

Consider carefully, before you put your house on the market, exactly what you expect to take and what you wouldn t mind leaving. Make a list. Before you invite the buyers in to see the house, replace items that might pose a problem later on.

For instance, what about those curtains from Grandma? Consider buying a replacement set of curtains, nothing fancy and certainly nothing expensive, that you are not attached to but that do look nice with the d r. If the buyer really likes the curtains and wants to keep them, you have just scored some points that might influence the price positively.

On the other hand, if the curtains you wanted were still up and you had never specifically stated that you were taking them, the buyer could insist that the they are real property and even if you do get them in the end, you might be forced to concede to a lower price. This friction may or may not cause a reduction in price, but either way, it was not worth the hassle. It would have been much simpler to replace the cherished item. Also note that if you agree that something will come with the house, you cannot change your mind. Once a situation arose where a seller agreed to leave all the furniture in the house exactly as it was (they had not lived there in years and did not need it). This included a riding lawn mower for the very expansive lawn. However, when the buyers got the key at closing and went in to the house, everything had been removed, including the lawn mower.

The buyers were furious, rightly so, and of course pursued the issue. Luckily for the seller, the buyer hadn t really wanted the furniture, just the mower, and when it was agreed that it would be returned, the buyer dropped the issue. However, if the buyer had so chosen, they could have pursued it all the way to court. And most likely won.

Some other items that might be in a personal property gray area are:

Keep in mind that while avoiding severe problems, you can still create small ones where none need have been created. If you decide that something is personal property and you remove it from where it was but leave it in plain sight, the buyer can create problems if they assume without asking that the item comes with the house. For instance, just because you disassemble the swing set, if you leave it laying on the lawn, the buyer may want it.

It is best to just remove the item from view, knowing that if it is not seen, it will not be wanted.