Business property may be defined as all items of personal property, as well as fixtures that are owned controlled, managed, or possessed by a business. Business property is an important part of any business, especially those that deal in production and distribution of products.
Depending on the type of business form, and state laws, business property may be categorized differently. Also, business some forms of personal property can be converted to business property, for instance, if an individual donates their personal property to be used by the business.
The term “business property” usually refers to non-real estate property (personal property), although it can sometimes encompass commercial real estate.
Business property may include items of property such as:
- Production equipment and machinery (factory equipment, cash registers, etc.)
- Company vehicles
- Signs or displays
- Installed fixtures (pipes, hoses, electric gear, etc.)
- Maintenance equipment owned by the company
- Company furniture
Many, many other types of property may be considered business property. The main defining characteristic is whether or not the business owns and controls the property. It’s also mainly a question of whether or not the property is being used for the overall purposes and goals of the company.
Business property can sometimes be a source of legal disputes, especially during the process of buying and selling a business. Some common business property disputes can include:
- Damage or losses associated with the business property
- Liability for injuries caused by the business property
- Distribution of the property upon the closing of the business
- Business property tax claims
- Commercial property insurance disputes
Most business property disputes result in a damages award, which can reimburse the plaintiff for their losses. In the event of a debt proceeding, business property can sometimes be subject to a lien. In such cases, the property may be seized and sold in order to make up for the business debt.
Business property is a rather complicated aspect of business law. You may need to hire a business lawyer in your area if you have any legal issues or disputes over business property. Your lawyer will be able to assist you if you need legal advice, or if you have to file a lawsuit in a court of law. Your attorney will also be able to provide you with legal representation during the formal court procedures.