What term refers to personal property that is not considered real estate?

The term that refers to personal property that is not considered real estate is "chattel." Chattel encompasses movable items that are owned by an individual, distinguishing them from real property, which refers to land and anything permanently attached to it, such as buildings. This classification is important in various legal and financial contexts, particularly in real estate transactions and mortgage financing, where the distinction between personal and real property can affect ownership rights, financing options, and taxation.

Understanding the definition of chattel helps to clarify that it includes items like furniture, vehicles, and equipment, which can easily be relocated, in contrast to real estate that remains fixed to a location. This distinction is foundational knowledge for a mortgage loan officer when assessing collateral for loans or advising clients about property ownership.