What Is Chattel in Real Estate Properties?

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Written By Tommy

DealBloom aims to share the latest tips and strategies to help realtors, brokers, loan officers, and investors navigate the world of real estate.

If you’re considering buying a home, or even if you’re just curious about the process, you’ve probably come across the terms “chattel” and “fixture.” But what exactly is the difference between them? In this post, we’ll focus on what is chattel in real estate.

Keep reading to find out what is chattel in real estate.

What is Chattel in Real Estate?

A chattel is a legal term used to describe a piece of personal property that is movable, as opposed to real property, which is land or a building. In the context of real estate, a chattel might refer to a piece of furniture, a car, livestock, or some other type of personal property that is located on the property.

You can borrow against this property by using a chattel mortgage. Chattel property is separate from land and improvements to it because it depreciates more quickly than real property.

The rights associated with a chattel property are often different than those for real estate. Real estate typically has a longer statute of limitations and is more difficult to challenge.

In the finance industry, the term “chattel” is used to describe personal assets such as cars and jewelry. The value of these goods depreciates quickly and is typically not affected by their condition.

Real estate and personal property are taxed differently, as the value of real property increases through renovation and improvement. Because of this, a chattel is assessed differently for financial assessments.

In the sale of a home, the seller may remove chattel from the property, but any permanent features will remain.


Different Types of Chattels

Chattel is a term used in real estate to describe personal property that is affixed to the land. This can include things like outbuildings, fences, and other structures that are not permanently attached to the land.

It can also include certain fixtures like light fixtures and appliances that are considered to be part of the property.

What is a Chattel Mortgage?

A chattel mortgage is a type of secured lending where the lender takes legal ownership of moveable property and places a lien on it. The lien is then removed when the debt is paid off.

Chattel mortgages are usually shorter in term than traditional mortgages, and they often have higher interest rates. That’s because the lender is taking on a greater risk by lending money for the purchase of a depreciable asset.

A chattel mortgage is often used to finance a mobile home or trailer. The mobile home itself acts as the security for the debt and can be moved as long as the lien stays in place.

If you’re considering a chattel mortgage, be sure to shop around for the best deal. And be sure to ask about the lender’s policy on repossession if you can’t make your payments.

Benefits of Owning a Chattel

There are plenty of benefits that come along with owning a chattel, and we’re here to explore some of the reasons why this type of real estate ownership can be advantageous for you.

For starters, let’s consider the freedom that comes with owning a chattel. Unlike traditional real estate ownership, chattel ownership gives you the ability to move your property as you see fit. This means that if you want to sell your chattel, you can do so without having to go through the hassle of finding a new property to purchase.

Additionally, if you ever decide to move to a new location, you can take your chattel with you – provided, of course, that it meets the requirements for being moved.

Another big benefit of chattel ownership is that it can be much cheaper than traditional real estate ownership. This is because chattels are typically much smaller in size than traditional homes or office buildings, which means that the initial purchase price is usually lower.

Additionally, chattels often don’t require as much maintenance as their larger counterparts, which can further reduce your overall ownership costs.

Of course, there are a few things to keep in mind before you purchase a chattel.

First and foremost, you’ll need to make sure that the chattel you’re interested in is actually movable. This may seem like a no-brainer, but there are some chattels out there that are permanently affixed to the ground, which means they can’t be moved.

Additionally, you’ll need to factor in the cost of moving the chattel to its new location, as this can sometimes be expensive.

However, if you keep these things in mind, owning a chattel can be a great way to save money and enjoy a high degree of freedom when it comes to your real estate ownership.

What is Chattel Paper?

Chattel paper is a document that describes the financial obligation of a borrower and the security interest held by the lender. An equipment lease is an example of chattel paper.

Many businesses choose to take out a chattel mortgage when purchasing equipment. This allows them to spread the cost of the machine over time, but the machine’s seller will want to retain a security interest on the item in case of default.

A chattel agreement allows a buyer to use the heavy equipment while allowing a seller to maintain possession until the terms of the contract have been met. If the borrower fails to meet his obligations, then the lender can repossess the collateral and resell it to recoup its loss.

Things to Consider Before Buying a Chattel

Before you purchase a chattel property, there are a few things you should keep in mind. Here are a few tips:

1. Location

Where is the chattel located? Is it in a desirable area?

2. Size

What is the size of the chattel? Is it big enough for your needs?

3. Age

How old is the chattel? Is it in good condition?

4. Price

What is the price of the chattel? Is it a good Deal?

5. Warranty

Does the chattel come with any warranties?

6. Returns

Can you return the chattel if you’re not satisfied?

7. Delivery

How will the chattel be delivered to you?

8. Setup

Will you need to set up the chattel yourself?

9. Maintenance

What is the chattel’s maintenance schedule?

10. Insurance

Do you need to insure the chattel?

Frequently Asked Questions

Is chattel a personal property?

A chattel is personal property that is movable and can be transferred from one person to another.

What is the difference between chattel and fixture?

A chattel is a movable personal property, while a fixture is a piece of personal property that has been attached to real property and becomes part of the real estate.


What is chattel in real estate? Chattel and fixture are two important terms in real estate that you should understand before making any decisions. Chattel refers to personal property, while fixture refers to anything that is permanently attached to the home.

Knowing the difference between these two terms can help you make informed decisions about your purchase or sale.