What does accession refer to in real estate?

Accession in real estate refers to the process of acquiring title to improvements made on a property. This concept is grounded in the idea that when a person adds something of value—usually through construction or other permanent alterations—to a piece of real estate, that addition becomes part of the property itself. This principle recognizes that improvements, such as buildings or fixtures, increase the overall value of the real estate and are thus incorporated into the title of the property owner.

This definition is pivotal in understanding how property rights work, especially in cases where structures or other enhancements have been built on a piece of land. It assures that the landowner has legal rights to not just the land itself, but also to anything that has been added to it, promoting stability and clarity in real estate ownership.

The other choices do not accurately capture the legal definition of accession. For example, forfeiture of property rights refers to the loss of ownership or rights to a property, which is unrelated to the concept of improvements. The legal procedure for obtaining a mortgage pertains to financing and does not relate to property improvements or additions. Similarly, adding personal property to a real estate transaction is more about the transfer of personal items rather than the permanent enhancement of the real estate itself.