Chattel Real

In real estate law, chattel real refers to a personal property interest that is closely connected to real property, most commonly a leasehold estate. Although it involves the use and possession of land or buildings, a chattel real is classified as personal property rather than real property because the interest is limited in duration and does not represent full ownership. For example, a tenant’s rights under a lease are considered a chattel real, as they grant the right to occupy and use the property for a specified term. This distinction is important in legal and tax contexts, as chattel real interests are treated differently from freehold estates when transferred, inherited, or encumbered.