Classes of Property

Real property includes land and all things permanently attached to it.

• Land (surface, subsurface, and air rights)
• Improvements (buildings, structures)
• Fixtures (items permanently attached to the land or improvements)
• Appurtenances (rights attached to the land, such as easements)

Ownership of real property includes the bundle of rights: possession, use, exclusion, enjoyment, and disposition.

Personal property consists of movable items not permanently attached to real property.

• Furniture
• Appliances not built-in
• Vehicles
• Clothing and tools

Personal property transfers by bill of sale, not by deed.

Fixtures are items that were once personal property but have become real property due to attachment or intent.

California uses the MARIA test:

• Method of attachment
• Adaptability to the property
• Relationship of the parties
• Intent of the parties
• Agreement of the parties

Unless excluded in writing, fixtures transfer with the real property.

Trade fixtures are items installed by a tenant for business use.

• Remain personal property
• May be removed by the tenant before lease expiration
• Tenant must repair damage caused by removal

Ownership interests of uncertain duration.

• Fee Simple Absolute (highest form of ownership)
• Life Estate (ownership for the duration of a person’s life)

Possessory interests of fixed duration, held by tenants.

• Estate for Years
• Periodic Estate
• Estate at Will
• Estate at Sufferance

Leasehold estates are considered personal property in California.

• Private property: owned by individuals or entities
• Public property: owned by government entities (federal, state, local)