A real estate can be defined as a piece of land that has buildings together with its naturally available resources on it including the crops and water. The same term can be used to imply the business of buying, selling or renting this property altogether with its natural resources. Real estate business is one that has profound roots, and the profession is legal in countries like the United States, Canada, India and even New Zealand. Real estate appraisal is a valuation system through which the opinion on the value of real property is established. The transactions in this profession often require estimates because each property is unique on its own and several factors play in the value. In real estate, there exists a difference between a fixture and personal property and there are bound to be issues that arise in its transactions.
Difference between fixture and personal property
A real property is defined by common law as a piece of land with improvements made by humans including buildings and machinery. It is also referred to as immovable property and is a type of assets. Additionally, there are key elements that come into real property and among them is its identification. A fixture can be described as a concept that is frequently used to mean any physical property that is fixed or attached to real property (Burke & Snoe, 2008). On the other hand, property not attached to real property is chattel property. The reason behind the use of fixture and chattel property descriptions is because of security interests. A good example of the fixture is a building on a piece of land. The building cannot be sold alone and is usually sold with the land as it is considered part of the land.
As opposed to a fixture, personal property is movable and not fixed and is more or less similar to the chattel property. This refers to the property that can be moved from one place to another (Burke & Snoe, 2008). A fixture includes the buildings and are fixed to real property, particularly land and cannot be moved hence the term immovable. This is the major difference between a fixture and personal property. In any case, personal property can be classified as either intangible or tangible personal property. The former describe the type of personal property that can be moved but at the same time cannot be felt. The latter is the opposite and can be moved, touched and felt. The distinction from real property is that one can get tax benefits for the chattel property because they are bound to depreciate faster.
Problems during real estate transactions
The main problems that one can face during a real estate transaction concern the title. Some of the most common problems with the title include liens, public record errors, forgeries, and owner’s transfer to heirs, missing will or invalid deeds (Boackle & American Bar Association, 2003). Liens refers to the right of an individual to keep property that belongs to another person, and it would be returned upon debt clearance. In such a case, the banks, for instance, might keep such property and even though the purchaser will not incur the debts but the debt is attached to the property and the title to the property being transferred. Another problem is with the public record where the title deed has clerical errors which are attached to property causing major problems. This problem causes a lot of misfortune on the new tenant trying to transfer to ownership.
Forgeries is another problem that titles face where conmen seek to sell property that is not theirs by providing fake documents. The individual seeking to transfer the ownership should be careful with the documents and should conduct the research with the public records before paying any money. Ownership transferred to the heirs of the dead tenant is another problem. Individuals might be seeking to sell property yet they do not understand the status of the property. The title of the property will end up being clouded and cannot be transferred to the new tenant. Invalid deeds is another problem where the individual is not in any capacity to enter into any legal agreement pertaining property because of an unenforceable deed like a minor possessing the deed (Boackle & American Bar Association, 2003). Missing will is another one where an individual buys a home from the state where the owner did not have a will or heir for that matter. The problem is that the will might resurface, and ownership would be a problem.
Real estate is indeed a profitable venture, and it involves the transfer of ownership of title from one individual or party to another. Therefore, it is every bit necessary for the involved persons to understand the actual difference between a fixture and personal property. Fixture implies the property that is attached to the real property and includes the improvements such as the buildings whereas personal property, also known as chattel or movable property is one that can be transferred from place to place. On the other hand, it is necessary to understand some of the problems that might occur during the transactions or transfer of ownership including the leasing of the property. They include forgeries, missing will, liens, and public record errors.
Boackle, K. F., & American Bar Association. (2003). Real estate closing deskbook: A lawyer's reference guide & state-by-state summary. Chicago: American Bar Association, General Practice, Solo & Small Firm Section. https://books.google.co.ke/books?id=0Ob1MwwJnOUC&pg=PA32&dq=real+estate+title+problems&hl=en&sa=X&redir_esc=y#v=onepage&q=real%20estate%20title%20problems&f=false
Burke, D. B., & Snoe, J. A. (2008). Property: Examples & explanations. New York: Aspen Publishers. https://books.google.co.ke/books?id=pmd9pKUndeYC&pg=PA75&dq=fixture+vs+chattel+property&hl=en&sa=X&redir_esc=y#v=onepage&q=fixture%20vs%20chattel%20property&f=false