Arizona Real Estate License Practice Exam

Changing an article from realty to personalty is defined by the process of severance. This occurs when an item that is considered a part of real estate (like a fixture attached to a building) is removed and thus no longer deemed real property. The act of severing disconnects the item from the real estate to which it was previously attached, allowing it to be classified as personal property instead.

For example, if a homeowner detaches an air conditioning unit or a built-in bookshelf, the removal of these fixtures transforms them from realty into personalty because they are no longer fixed to the property. This distinction is important in real estate transactions and property law, as it can affect ownership rights and the valuation of the property involved.

The other processes mentioned do not change the classification from realty to personalty. Annexation refers to converting personal property into real property (for instance, by attaching a shed to the land), while a verbal declaration lacks the legal capacity to alter the status of property in this context. An order from the commissioner pertains to regulatory matters rather than the direct transformation of property classifications.