What does the legal term 'personal property' encompass?

The legal term 'personal property' encompasses movable items that are not classified as real estate. This includes items such as furniture, vehicles, and equipment that can be transported or moved from one location to another. Personal property is distinguished from real property, which refers to land and anything permanently attached to it, such as buildings or structures. Therefore, the correct understanding of personal property is essential for differentiating between types of assets in legal and real estate contexts.

Understanding this distinction is crucial because it impacts ownership rights, taxes, and how items are transferred in sales or probate situations. Movable items are typically easier to transfer than real estate, which often requires more formalities due to its permanence and associated rights.