What are the underlying reasons for the law to continue to make distinctions between real and personal property?

Answer 1

The concept of real and personal property was developed in English Common Law. It centered on the distinction between movable and immovable property which was recognized in Roman Law. Real property is permanent. Real property is considered superior in dignity to personal property. In early America only landowners were allowed to vote. Real property must be transferred by deed and state laws control the passing of title upon the death of the owner when there is no will.

In places where private ownership is allowed, a society must be able to document the ownership of real property and what happens to it when the owner dies. To meet that need modern societies devised systems of land records where transactions affecting real property are permanently recorded. The owner is the one who has the right to possess, use and enjoy the real property. That ownership is protected by law. Alternatively, the owner is responsible for the property and is the person who must pay the property taxes that help to maintain government services that are vital to any modern society.

It is not necessary to maintain that degree of record keeping for all personal property although ownership of motor vehicles is tracked by a system of title certification and registration. It wouldn't matter if no one could determine who owned a bicycle left on the curb. However, if there was a deteriorating block of buildings in the center of town, or an old farm on the edge of town, the identity of the owner must be available.

The public has no over-riding interest in the ownership of personal property and it eventually benefits when a person dies with no heirs-at-law or with abandoned or unclaimed personal property. In those cases, that property is eventually turned over to the state under the doctrine of escheatment.

• Personal property is any property that can be moved.
• Tangible personal property is property that has a physical form.
• Intangible personal property is property that does not have an intrinsic value but is representative of value such as securities, copyrights, royalties, goodwill of a business, life insurance and annuities.

Real and personal property have become distinguished from one another over thousands of years. The differences are important and there would be no reason to discard them.