In: Operations Management
What is the difference between real property and personal property? Why does the law make a distinction between real property and personal property?
Those properties which are immovable are called real property. For an example any piece of land and anything which is attached to that land for an example crop, infrastructure etc. If we understand the term property then it means anything which has been earned legally is called property. We cannot move the real property as well hide. Personal property are those which immovable property and also legally acquired except land.
Anything which is attached to land is called the real property for an example the crop, the swimming pool, infrastructure on the land, a well etc. Personal property for example if it is furniture, electronic motor etc which are movable and its ownership can be transferred there it is personal property. We can hide or move the personal properties
The distinction has been made by the government to cover those terms under the separate laws. The importance of both types of the properties is different hence the cost of acquiring those properties is distinct. That is why separation is needed.
Further if the distinction is not there then the cases will be more complicated due to its properties such as make it hide, move.