What process converts personal property into real property during construction?

The process that converts personal property into real property during construction is known as annexation. This term specifically refers to taking items that are considered personal property, such as building materials, and attaching them to land or structures in a way that they become a permanent part of the real estate. For example, when bricks, lumber, or concrete are used in the construction of a building, they transition from being temporary personal property to permanent real property as they become part of the building structure.

Understanding annexation is crucial in real estate because it affects how property is classified and what can be owned or transferred in terms of legal rights. This distinction is important for issues relating to property taxes, liability, and ownership rights.

Integration refers to a similar concept but is more about the assembly of items rather than their conversion from one property type to another. Estoppel is a legal principle that prevents someone from arguing something contrary to a later position, typically in contract law. Reversion relates to the return of property rights to the original owner after a lease or a conditional transfer, rather than the conversion of property types. Therefore, annexation is the most precise term to describe the process in question.