What is the process called when an article changes from realty to personalty?

Study for the Arizona Real Estate Exam. Boost your knowledge with flashcards and multiple choice questions with explanations. Be exam-ready with our comprehensive review!

The process by which an article changes from realty to personalty is called severance. This occurs when an item that is part of the real estate—meaning it is considered real property—is removed from the land or structure and becomes personal property. An example of severance is when a homeowner decides to take a built-in appliance out of the house during a sale; it is no longer attached and is thus considered personal property.

Understanding the concept of severance is essential in real estate because it impacts ownership rights and property transactions. In contrast, annexation refers to the process by which personal property is attached to real property, resulting in its change from personalty to realty. Verbal declaration lacks formal recognition—ownership changes should ideally be documented—while an "order of the commissioner" pertains to legal or administrative directives and does not relate directly to the classification of property types. Therefore, the correct term for the process of converting realty to personalty is indeed severance.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy