Ep. 51: What Is The Difference Between Real And Personal Property?

Hello ladies and gentlemen. Thank you for coming to this week’s video
blog here at California Realty Training, my name is Robert Rico, hoping you’re having
a great day. I definitely am. Want to bring some great information to you
in the real estate world. Trying to make it easier for you to understand
so when you do get involved in the real estate world, boom, you go off and running. This is the deal, today I want to discuss
the difference between real property and property. Are they different? Absolutely. Let’s keep them apart. In a nutshell, real property, real property,
I want you to remember this, key word here is immovable. Immovable, you can’t move it. Real property is what you’re buying when you
buy real estate. The house. Anything attached to the house. But key word here is attached. Immovable and attached. Anything that you cannot and anything that
is attached to the house is technically considered real property. The house itself, it ain’t going anywhere. The chandelier, it’s attached to the house. The built in dishwasher, it’s attached to
the house. Anything attached to the house. Key word here. What we consider immovable is real property. So when a buyer walks into a house and he
makes an offer on the house, all those items must remain. Some of you out there in the real estate world
sometimes get these confused. Completely different subject matter. Personal property, what? That’s right, you can move it. Personal property you can move it, this glass
here. This teacup, you can move it. A sofa, you can move it, personal property. A refrigerator, personal property. Let’s see, a television, personal property. And that’s the main difference. I want to go a little deeper though, that’s
the main difference. Real property, you take a buyer into a house,
this is the house. Well hey guys, I like this house so I’ll make
an offer on it. It’s got a nice chandelier there, it’s got
a sofa there, it’s got a couch over there, it’s got a recliner over there, it’s got an
above ground jacuzzi in the backyard, it all looks great. Buyer makes the offer, buyer closes the deal,
buyer goes into this new house he just bought for the very first time assuming that that
above ground Jacuzzi’s going to be there and to his surprise, whoa, it’s not there. The seller took it. You know why the seller took it, right? Because it’s personal property. It’s not attached. That make sense to you? If it’s not attached and it’s not immovable,
it’s personal property. This is the deal. It’s your job as an agent to make that clear
for your buyers. This is what I recommend you do, when in doubt,
write it out. When in doubt write it out. So you walk into the house, and you’re going
through the house and buyer says, “Wow, I really love this house, let’s make an offer
on it now.” So you make the offer. But before you make the offer, the buyer will
ask you, “Hey, Rico, I wonder if this chandelier comes with the house? ‘Cause I really, really like this chandelier,
wow, it’s beautiful.” I just told you that anything that’s attached
to the house, anything attached to the house, like that chandelier must remain with the
house. If a contract is supposed to stay with the
house. I know that as the buyer’s agent but does
the seller’s agent know that? Does the seller know that? The last thing you want is for the buyer to
buy the house, he walks in for the very first time into his brand new house and what, that
chandelier is gone. Whoa, that’s the last thing you want. Let me share something with you. Happened to me once. It was a nice smooth escrow, everybody was
on time with their documents, with their signature, everything was rocking and rolling. And then, came to the very end, we closed
the deal, I handed over the keys to the new buyers, buyer’s agent, buyer’s agent gave
the keys to their client, the buyers, buyers walked into their brand new house that I was
representing, buyers walked in and they flipped. They called me immediately and I said, “What’s
going on? It was a great transaction. Why is everybody so upset?” And they said, “Well, your clients, the sellers,
just took all of the blinds from the whole entire house.” Now blinds are attached. Technically by contract, blinds remain ’cause
they’re attached to the window. They were specifically made for those windows. My seller knew that. He wasn’t supposed to take them. Now we got a huge house with no blinds. Nothing. Of course, I had to contact my seller. Immediately say, “Bring back those blinds
for the windows.” He brought them back. But imagine if they didn’t. Imagine if you were representing somebody
and that chandelier was gone. Who would they look for to replace these kind
of things? That’s right, you, the agent. They would expect us to fix it. And the only way to fix it sometimes is to
replace the item that was taken that wasn’t supposed to be taken. Let’s go through this one more time. Real property, it’s immovable and it’s attached,
those are key terms. Immovable, attached. Personal property, you can move it, it’s personal. A lawnmower, furniture, a bike, a car, safest
thing to do, is when in doubt and you’re making your offer and you wonder, I wonder if this
item is supposed to remain? If you want it, write it in the contract. That being said, keep yourself out of trouble. How do you keep yourself out of trouble? Put it in the contract. When in doubt, write it out. Hope you learned something today when it comes
to real property versus personal property. It’s the big difference. Keep yourself out of trouble. Know the difference. And when in doubt, write it out. Hope to see you next week on our video blog. You have any questions or concerns, do us
a favor, leave them down there in section below and if you haven’t already subscribed,
become a subscriber, you’ll be getting these video blogs all the time which are great. And hopefully they’re helping you out. Have a great day, hope to see you next week.

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