In the domain of property law, property is divided into two categories: movable and immovable property. The difference between these two types of properties is of significant importance when dealing with their mobility, ownership, transfer of ownership, and taxation aspects. This article gives an insight into movable property, offering several examples and the key differences between a movable property and immovable property.
What is a movable property?
A movable property refers to any tangible or intangible asset, which is not fixed to a specific location and can be moved from one place to another. Such type of property includes tangible items such as furniture, vehicles, and jewellery, as well as intangible items such as stocks, bonds, and intellectual property (copyrights and patents, among others).
Notably, a movable property ownership can be legally transferred through inheritance, gift, and sale. The change of ownership of this property type is less complex compared to immovable properties (land, buildings, and so on).
Movable property examples
Encompassing a wide range of items in tangible and intangible assets, movable properties include the following:
Tangible movable property
- Personal belongings: Clothes, jewellery, furniture, electronics, appliances, sports equipment
- Vehicles: Cars, motorcycles, bicycles, boats, aeroplanes
- Livestock: Cows, horses, sheep, poultry
- Machinery and equipment: Industrial machinery, tools, agricultural implements
- Art and collectables: Paintings, sculptures, antiques, coins
Intangible movable property
- Intellectual property: Patents, copyrights, trademarks
- Financial instruments: Cash, mutual funds, stocks, bonds, debentures
- Digital assets: Cryptocurrencies, E-books, software licenses
- Debts and other financial claims: Promissory notes, accounts receivable
Difference between a movable property and an immovable property
Here are the key differences between a movable property and an immovable property in the table:
| Key difference between movable property and immovable property | ||
|---|---|---|
| Feature | Movable property | Immovable property |
| Definition | Property that can be moved from one location to another without changing its physical form. | Property that cannot be moved from one location to another without changing its physical form. |
| Examples | Vehicles, furniture, jewellery, money, livestock, machinery, and books, among others. | Land, buildings, trees (Except standing timber), fixtures, plants (Except movable crops), and so on. |
| Legal registration | Generally not required. | Requires registration under the Transfer of Property Act. |
| Transferability | Easier to transfer ownership. | The complex process involves the transfer of ownership. |
| Taxation | Different tax rules depending on jurisdiction | Often subject to property taxes and Stamp duty. |
| Security | Pledging jewellery can be used as security for loans. | Mortgages can be used as security for loans. |
In conclusion, a movable property covers various tangible and intangible objects that can be easily transferred from one place to another. From daily use items such as furniture and vehicles to valuable assets such as jewellery and artwork, a movable property is subject to different legal regulations compared to immovable property. Its portability and easier transfer of ownership also make it a valuable asset.
