Nepedia
Back to Discover
Advanced Reader
📖

Personal property

society Maturity 11-13 Next article →

Personal property refers to any asset that is movable. In common law systems, this type of property is often called chattels or personalty. In civil law systems, it is frequently termed movable property or simply movables. This category is defined by the ability to move an item from one location to another. It stands in direct contrast to real property, also known as real estate. Real property includes immovable things like land and buildings.

There are two primary classifications for personal property: tangible and intangible. Tangible personal property consists of items that can be touched or felt. Common examples include furniture, clothing, jewelry, art, and household goods. Some tangible items, such as motor vehicles or boats, require formal title documents. These documents prove ownership and rights to transfer the item. Other tangible goods do not have official titles and are presumed to belong to whoever possesses them.

Intangible personal property, or intangibles, represents a different kind of value. These are assets that cannot be physically moved, touched, or felt. Instead, they represent value through things like securities or negotiable instruments. They can also include services or intangible assets known as chose in action. While you cannot hold an intangible asset, it still holds significant economic importance.

The history of these terms shows how language and ownership have evolved. The word "cattle" is an Old Norman variant of the Old French word "chatel." This eventually became the English word "chattel." The term originates from the Latin word "capitalis," which means "of the head." Historically, the word chattel was used as a synonym for all general movable personal property.

Legal and financial rules for personal property differ from those for real estate. For instance, accountants note that personal property can be depreciated faster than improvements. Land is not depreciable at all, so this distinction matters for tax benefits. Rights regarding movables are also often more attenuated than rights regarding immovables. Statutes of limitations or prescriptive periods are usually shorter for personal property. Real property rights are often enforceable for much longer periods.

Ownership of personal property can also be used to secure debts. In common law, a mortgage is used for real property. For personal property, similar devices exist, such as a chattel mortgage or a security interest. In the United States, Article 9 of the Uniform Commercial Code governs many of these transactions. Some jurisdictions also levy a personal property tax. This is an annual tax on the privilege of owning or possessing property. Registration fees for boats and automobiles are common examples of this tax.

Different political theories offer unique perspectives on the nature of property. Marxist theory distinguishes between private property and personal property. Marxists argue that private property can include factories, mines, and infrastructure. These assets generate capital for an owner without the owner performing physical labor. In contrast, personal property includes items intended for personal use, like clothes or a toothbrush. Anarchist theory also makes a distinction between capital and consumer goods.

495 words

Where will your curiosity go next?

Keep exploring at your chosen reading level.

More to explore

🔬 Go deeper

More advanced topics to explore

🪜 Step back

Simpler topics to build understanding

What is Nepedia?

A free, ad-free encyclopedia for children. Every article is written at five reading levels, so the same page works for a five-year-old and a fifteen-year-old — use the level switcher above to see this one change. No account needed to read.