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.