Leasing License Practice Exam

Which of the following is a characteristic of personal property?

1. It is immovable

2. It is tangible and not attached to land

3. It requires a deed for transfer

4. It is subject to property taxes

The correct answer is: It is tangible and not attached to land

Personal property is primarily characterized as being tangible and not attached to land. This type of property includes movable possessions like vehicles, furniture, and electronics, differentiating it from real property, which is fixed to land. The immovability of property is a defining trait of real estate, not personal property, hence the first option does not accurately describe personal property. A deed is typically used for transferring real property rather than personal property, which may be transferred through other means, such as a bill of sale. Additionally, personal property is generally not subject to property taxes in the same manner as real property, which is also taxed based on its assessed value. Thus, the defining characteristics of personal property revolve around its tangibility and the fact that it is not affixed to the land, making it easily movable and transferable without the formalities that accompany real estate transactions.