Build the language · 4 / 8

When a home is sold, what stays and what can leave?

How property ownership and home transactions work

1 · Start with the idea

Some things are part of the real property and normally go with the property unless excluded. Other things are personal property and normally do not go with it unless included. The difference can change what the buyer actually receives.

2 · Picture it

A tree growing in the yard is part of the real property. Cut it down into firewood and it becomes movable personal property. The same physical material can change category when it is attached or separated.

3 · Now learn the English words

personal propertymovable property that is not part of the real property

annexationwhen personal property becomes attached and may become real property

severancewhen something is detached from real property and may become personal property

4 · Why this matters

This is not only about arguments over refrigerators. Classification affects how property transfers, how it is described, and what a real-property security interest may cover.

5 · Check yourself

What can happen to an item when it is permanently attached to property?

Show answer

It may change from personal property to real property, depending on the facts and applicable rules.

Source

StateCourse California Real Estate Principles · Lesson 02