Legal Definitions - mixed property

Mixed property refers to a collection of assets that includes both real property and personal property. Real property consists of land and anything permanently attached to it, such as buildings. Personal property includes all other movable items, like vehicles, furniture, bank accounts, or intellectual property. This distinction is crucial because different legal rules often govern the ownership, transfer, taxation, and inheritance of real property versus personal property.

Here are some examples to illustrate the concept of mixed property:

• Estate Administration: When an individual passes away, their estate often comprises mixed property. For instance, a deceased person's estate might include their primary residence (real property), a vacation cabin (real property), their car (personal property), their collection of rare books (personal property), and their investment portfolio (personal property). All these assets together constitute mixed property, and their distribution will be subject to different legal procedures depending on whether they are real or personal property.

• Business Acquisition: When a company acquires another business, the transaction frequently involves mixed property. Imagine a large corporation buying a manufacturing plant. The acquisition would include the factory building and the land it sits on (real property), along with the machinery, inventory, office equipment, and intellectual property like patents and trademarks (all personal property). The entire package of assets being transferred in the sale represents mixed property.

• Insurance Claims: In the event of a disaster, such as a flood or fire, a homeowner might file an insurance claim for mixed property. The claim would cover damage to the physical structure of the house itself (real property) as well as the loss or damage to personal belongings inside, such as furniture, electronics, clothing, and artwork (all personal property). The insurance policy and subsequent claim would address both categories of property.