Personal property constitutes all forms of property other than real property; that is, all forms of property other than land and interests in land (excluding leaseholds). In practice, personal property includes property that exists after the exclusion of land, fixtures and some statutory licences. Personal property is traditionally divided into two classes:

• chattels real (which includes interests in land for a fixed term of years and annuities issuing out of such interests); and

• chattels personal (which includes all other forms of personal property, both tangible and intangible).

See Types of personal property.

In Australia, the two main interests recognised in personal property are possession and ownership.

Similar to the possession of real property, possession of personal property connotes a relationship between a person and some material object. Whether a party has the right to possession is determined by their exclusive physical control of the object, compounded with their intention to deny any other party the right to access or use the goods without the permission of the possessor. The determination of possession arises from a factual situation and is dependent on the circumstances of the case at hand.

Ownership of property indicates the relationship which exists between an individual and a corporeal or incorporeal object which they have absolute dominion over. In the practical sense, the general right of ownership embraces rights:

• to exclusive enjoyment;

• to destroy;

• to alienate;

• to alter;

• to maintain; and

• resume and recover possession from other persons.

It also includes the right to receive income from royalties.

See Interests in personal property.

A transfer of ownership or title to personal property is a voluntary consensual dealing unless subject to statutory or common law exceptions. Commonly, title to goods can be transferred between parties by way of the following inter vivos dealings:

• gift;

• sale;

• assignment; and

• by operation or process of the law, for example on bankruptcy.

See Transfer of personal property.

Under common law, an individual’s or party’s interest in personal property is protected in tort. In circumstances where there is interference with a party’s possession or ownership of goods, he or she may commence an action through the following claims:

• trespass to goods;

• conversion; or

• detinue.

Under statute, reforms have been enacted to offer further protection for interest holders in relation to personal property. This includes the Personal Property Securities Act 2009 (Cth) , which is a single system of laws and registration system to secure interests to personal property. See Personal property securities. A security interest in this sense means an interest in relation to personal property provided for by a transaction that, in substance, secures payment or performance of an obligation (without regard to the form of the transaction or the identity of the person who has title to the property): s 12 of the Personal Property Securities Act 2009 (Cth).

See Protection of personal property.