Real Property vs. Personal Property

When it comes to buying and selling real estate in Minnesota, buyers and sellers often find themselves asking "what's included in the sale?". When negotiating real estate transactions, typically real property is what conveys unless otherwise specified in writing in the contract.

The main difference between real property and personal property is that real property is land and any perminant structures on it; personal property refers to anything else that is owned or on the property. Think if you were to take that piece of land and flip it upside down, what would stay in place and what wouldn't? The things that would stay in place would be typically considered real property.

Definitions between real property and personal property can be blurry in some situations

You could probably look at eat item in your home and determine whether or not it's considered personal or real property, but did you know...

• Property can change from real property to personal property or vice versa. For example, a television mounted on a wall is considered real property, but once it's taken off of the wall it's considered personal property.
• An object's context can effect its definition. Furniture in a home is commonly considered personal property, but if the furniture is being marketed in a "fully furnished rental property" for sale, it could be considered real property.
• For some things, it really just depends... for example, residential solar panels or farming machinery or business equipment.

What types of property are typically included when you buy or sell residential real estate?

Again, this depends on what is negotiated in a sale, however in most cases all kitchen appliances, clothes washer and clothes dryer are often conveyed in the sale of the home. However, these items still need to be outlined in a purchase agreement. Other items that would be expected to convey are things such as light fixtures, affixed curtain rods/blinds. In some cases though, other items/ personal property may convey with the home as well (i.e. lawnmower, golf cart, in home business, etc.).

Every real estate transaction is different in its own way. When in doubt, discuss specific items more in depth with your trusted real estate professional.