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    A Quick Guide to the Differences Between Immovable and Movable Properties

    movable and immovable property
    (source: consultease)

    Property ownership can be challenging, especially if you are unclear about the different properties. Currently, there are multiple personal laws and statutes governing properties worldwide. Broadly speaking, there are two types of properties, movable and immovable properties.

    Are you confused about these types? This article will help you understand the difference between movable and immovable property.

    What Is Movable Property?

    As the name suggests, a movable property refers to the type of property that one can easily move from one location to another. You do not have to change any of its qualities, such as size, shape, quantity, etc., such as books, utensils, jewellery, vehicles, furniture, etc., come under movable properties.

    According to Section 2(9) of the Registration Act, 1908, movable properties include timber, crops and grass, fruits and fruit juice in trees. The Indian Penal Code, on the other hand, believes every property can be movable, except things permanently attached to the earth that are termed as immovable properties.

    What Is Immovable Property?

    Immovable properties are the exact opposite of movable properties. These cannot be moved easily from one location to another. According to Section 3(26) of the General Clauses Act, 1897, immovable properties include land and other things attached to or permanently rooted in the earth. In general, these include land or real estate properties.

    As land comes under immovable property, the benefits arising from the land are also considered immovable. For instance, the rent acquired from such property or its interest will be considered immovable. Moreover, any object growing under the surface in its natural state is immovable such as minerals, natural vegetation, stones, etc.

    What Is the Difference Between Immovable and Movable Properties?

    Now that you know about the two types of properties, the difference between the two can help you know more. The following table will give you a better idea regarding movable VS immovable property.

    Parameter

    Movable Property

    Immovable Property

    Concept

    You can transport this type of property from one location to another. You do not need to make significant changes in their shapes, sizes, or other qualities while moving them.

    You can hardly transport these properties from one location to another. If you move, they might lose their original shape, size or other qualities.

    Rights

    It allows the right of worship, decree of sale of a mortgaged property and royalty.

    It allows the right to collect the rent of immovable property, ferry, fishery, way, etc.

    Ownership

    The ownership of this type of property rests with contact laws and other common laws. Any practitioner of common law can deal with it.

    The ownership of this type of property comes under the regulations of the Deeds Registries Act and the Sectional Titles Act. Only property law practitioners can deal with these.

    Registration

    You do not need any legal registration for movable properties. However, you can get it if you want or the others want to get it.

    One must register every immovable property exceeding ₹ 100 under the Registration Act, 1908. You cannot enjoy immovable properties without a registration.

    Taxation

    This property type is mainly subjected to the Value Added Tax (VAT). You might have to pay VAT while dealing with these.

    This type of property is subjected to stamp duty according to the Indian Stamp Act, 1899. You will have to pay the stamp amount for registering this property.

    Inheritance

    These properties can be easily inherited and divided. Anyone can give it to others as per requirements.

    It is difficult to divide and inherit such properties. You also need to undergo more legal actions to inherit these.

    Security type

    When it comes to security, one can pledge these properties. The security level is therefore not high.

    These properties can be kept as a mortgage in terms of security. It is a higher form of security.

    What Are the Different Types of Movable Properties?

    There can be innumerable movable properties, as these are anything and everything not rooted to the earth. Some of the common types of movable properties are as follows.

    • Vehicles and electric devices
    • Jewellery items and precious stones
    • Books
    • Trees cut and sold for timber purposes
    • Growing crops and grass
    • Royalty
    • Decree on the rent money
    • Promissory notes from government offices
    • Machinery equipment not attached to the earth
    • Stock shares

    What Are the Different Types of Immovable Properties?

    When it comes to immovable properties, the categories are much limited. Here are the common types of properties that are considered immovable in India.

    1. Things Rooted to Earth

    This category comprises all the things that have their roots in the earth. These include trees and bushes. However, growing crops and grasses are not considered here. Moreover, trees cut and sold for timber purposes also become movable. If trees are used for shade or nourishment, they will be considered immovable as long as they are rooted.

    2. Thing Embedded in the Earth

    This category includes properties like houses, buildings, factories, natural water bodies and other real estate properties. These are all embedded and built upon the earth, hence immovable. However, properties like ship anchors cannot be immovable. These are embedded in the mud temporarily.

    3. Chattel Attached to the Earth

    This category includes things attached to houses or buildings which are attached to the earth. It includes furniture based on its strength and capacity. Not all furniture will be immovable.

    What Are the Rights Associated With Movable and Immovable Property?

    Now that you know the differences between the two, you should know about the rights affiliated with movable and immovable property. These are listed in the following table.

    Movable property

    Immovable property

    Right of warship

    Right to collect the rent of immovable properties

    Government promissory notes

    Right of ferry

    Decree of sale of a mortgaged property

    Right of way

    Right of royalty

    Right of fishery

    Right to recover maintenance allowance of immovable properties

    Right to receive future rents and profits of the land

    Right to purchase property for registration

    Right to collect lace from the trees

    Therefore, as you can see, there are some major differences between movable and immovable property. As this article pointed out, you must have proper knowledge and ideas about these two types of properties if you are planning to purchase or inherit these. It will help you avoid legal complications in future.

    Frequently Asked Questions

    What kind of property is bank balance and transactions?

    Bank transactions and bank balance come under the category of movable property. These can be transported from one place to another.

    Bank transactions and bank balance come under the category of movable property. These can be transported from one place to another.

    How to transfer an immovable property?

    According to section 122 of the Transfer of Property Act, 1882, you can transfer an immovable property through a gift deed. You can send it to your spouse, child or any relative after registration under their name.

    According to section 122 of the Transfer of Property Act, 1882, you can transfer an immovable property through a gift deed. You can send it to your spouse, child or any relative after registration under their name.

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    Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

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    Last updated: 2023-03-23

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