Real Estate & Personal Property
Difference Between Real & Personal PropertyThere is a physical distinction to be made to determine whether property is Real or Personal.
Real Estate is the physical land and appurtenances including structures affixed thereto in addition to the interests, benefits and rights inherent in the ownership of physical real property known as the bundle of rights.
Personal Property is generally those items not permanently affixed to real estate. Personal property is movable and can be removed without serious damage either to the real estate or to the item being removed. The three categories of taxable personal properties are:
- Business and professional furnishings
- Household furnishings, in property other than the principal residence
- Personal property of public utilities
Fair Cash ValueThe assessors are required to assess all property at its full and fair cash value, a term which could also be described as market value or fair market value. Massachusetts General Laws define full and fair cash value as the price an owner willing, but not under compulsion, to sell, ought to receive from a buyer willing but not under compulsion to buy.
The definition of market value as noted by the International Association of Assessing Officers (IAAO) is as follows:
- Market value is the most probable price expressed in terms of money that a property would bring if exposed for sale in the open market in an arm's length transaction between a willing seller and a willing buyer both of whom are knowledgeable concerning all the uses to which the property is adapted and for which it is capable of being used. An arm's length transaction would be a sale between two unrelated parties both seeking to maximize their position from the transaction.