Personal Property

AAA

DEFINITION of 'Personal Property'

A type of property which, in its most general definition, can include any asset other than real estate. The distinguishing factor between personal property and real estate is that personal property is movable. That is, the asset is not fixed permanently to one location as with real property such as land or buildings. Examples of personal property include vehicles, furniture, boats, collectibles, etc.

Also known as "movable property", "movables" and "chattels."

INVESTOPEDIA EXPLAINS 'Personal Property'

It's tough to have a precise definition for "personal property" as it is very much a legal term. The concept is perhaps best understood with a comparision to real property. Under common law systems it is possible to place a mortgage upon real property. Because the lender has rights to the property it makes the extension of credit relatively safe and easy. After all, it's tough to flee the country with your house. On the other hand, it's tougher for a creditor to secure personal property. While common law systems do allow liens to be placed on personal property (such as vehicles) to protect the rights of creditors, there is obviously much more risk that the debtor simply drives away with the collateral if fleeing the country.

RELATED TERMS
  1. Scheduled Personal Property

    Additional coverage that's over and above the typical coverage ...
  2. Non-Scheduled Personal Property

    Refers to the items that are automatically covered under your ...
  3. Common Law Property

    A system used by most states to determine ownership of property ...
  4. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
  5. Land

    Property or real estate, not including buildings or equipment, ...
  6. Personal Use Property

    A type of property that an individual does not use for business ...
Related Articles
  1. Tax Deductions For Rental Property Owners
    Taxes

    Tax Deductions For Rental Property Owners

  2. Vacation Home Or Income-Producing Investment?
    Taxes

    Vacation Home Or Income-Producing Investment?

  3. Exploring Real Estate Investments
    Home & Auto

    Exploring Real Estate Investments

  4. Finding And Investing In FHA Condos
    Investing Basics

    Finding And Investing In FHA Condos

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center