In a legal sense, personal property is anything other than land that can be subject to ownership. One of the defining characteristics of personal property is that it can be moved, unlike real property, which cannot.
Personal property may fall into one of two categories, tangible and intangible. Intangible personal property is property that can be handled physically, for example:
- Clothes;
- Jewelry; and
- Furniture.
Intangible personal property is property that cannot be physically handled, which may include:
- Trust fund accounts;
- Stocks; and
- Other similar things.
Personal property can also be called chattel or personalty. A fixture in a building that can be removed without causing damage may also be considered personal property.
How Does the Legal Definition of Personal Property Compare to the Legal Definition of Real Property?
The classification of real property or personal property is an important one because the laws may differ depending on whether the item is classified as realty or personalty. In addition, the applicable property laws may vary based on the location of the property.
Due to the fact that real property is defined as any property that is land or that is attached to or affixed to the land, it includes crops and buildings. It is important to note that there is an assumption that the majority of real property has a higher value that personal property.
What Is the Legal Definition of Real Property?
The legal definition of real property includes land as well as anything that is growing on, affixed to, or built upon it. This definition includes crops and man-made buildings.
Real property is property that does not move or that is attached to land. This is different from personal property that can be moved or transferred physically.
The terms real property and real estate may be used interchangeably. In addition, real property may include anything that is permanently located under or within the land, such as minerals, gasses, or oils found under the land.
An additional term that may be used for real property is premises.
How Is Real Property Transferred?
Both personal property and real property may be transferred. The majority of states have statute of frauds laws that require sales that involve real property be in writing.
This helps to create a record of the transfer. Because real property cannot be physically moved from one owner to the next, a transfer must be symbolically done in order for the transfer to be legally recognizable.
This is typically done by an exchange of a deed of title to the land. The transfer of a written deed should be recorded at the county recorder’s office to ensure there is a record of the change of ownership.
Real property may be transferred in numerous different ways, including:
- By sale and purchase;
- As a gift from one person to another; and
- Through a devise, or a transfer through a will document.
What Is Accession, Confusion, and Gaining Title to Another Person’s Belongings?
The terms accession and confusion are ways in which a party or individual may obtain the property of another party. In a normal situation, if one individual takes the property of another, called conversion, they may be legally required to return the property or to pay the owner for the value of the goods.
Conversion may be a criminal offense or a civil wrong. Although the elements of the offense may differ by state, in general, to prove conversion, the prosecution must prove:
- The rightful owner had full ownership or had the right to possession of the property;
- The defendant committed an unlawful taking of property that was not consistent with the property rights of the rightful owner; and
- The defendant failed to return the property or converted the property into another form without permission from the property’s rightful owner.
In addition to criminal charges, an individual who commits property conversion may also be sued by a rightful property owner for the damages resulting from the conversion. With civil conversion, the rightful owner of the property must show that the defendant intended to convert their property in a manner that was not consistent with their ownership rights.
Two exceptions to this rule are accession and confusion. These are legally acceptable theories in certain states, while other states do not accept either doctrine.
In California, for example, original property owners are allowed to reclaim their property no matter how much the other party improved it. The property owner, however, is required to reimburse the other party for their labor in making the improvements.
What Is Accession?
In general, accession is the act of acquiring the property or goods of one party by another party and improving the worth of the property or goods or turning it into something better. When an individual uses additional materials or contributes their own labor to improve or increase the value of another individual’s property, they may be able to acquire title to the finished product by accession.
Accession must be done in good faith. If a party acquired property through a bad faith dealing, that property will remain the owner’s and the trespasser will not be able to recover labor or materials.
Accession may also arise when one party changes another individual’s property entirely. For example, if one individual took a bushel of their neighbor’s cotton that was laying around and turned that cotton into a pair of socks, they may acquire title to the improved cotton socks by accession.
What is Confusion?
Confusion is a legal term for property that is inseparably mingled that it is impossible to determine who is the rightful owner. Confusion allows a property owner to acquire title to another individual’s property as a result of the intermingling.
Confusion also applies when goods have mixed and created something new. In these instances, both of the parties would be entitled to partial ownership of the property.
What Are Some Examples of Accession and Confusion?
Accession is similar to the creation of something new. For example, if an individual adds something to raw materials, they own the property that they made from the raw material.
Suppose an individual constructs a tree house with lumber that they do not own. They used something they did not own, so they would be liable for the value of that property. However, they own the product of their labor, the tree house.
Another example of accession would be if one individual’s property is covered with unwanted alfalfa and they allow another individual to come and cut it and turn it into bales of feed for livestock. In this example, the individual who transformed the property can acquire the finished product, or the bails of feed, by accession.
Confusion, as noted above, occurs when property is intermingled, either intentionally or negligently. One common example of confusion is when different grains are intermingled in a silo.
Should I Contact a Property Attorney?
If you have any issues, questions, or concerns related to accession or confusion, it is important to consult with a property lawyer. Your lawyer can tell you about your rights and provide guidance on legal issues involving accession or confusion.
Your lawyer will also represent you in court if a claim of property conversion is brought against you.
