Which term refers to the act of changing an item of real estate to personal property?

The term that describes the act of changing an item of real estate to personal property is severance. This process occurs when something that is considered a permanent fixture of real estate, such as a tree or a building, is removed and turned into a piece of personal property. For example, when a homeowner cuts down a tree and takes it off the property for personal use, that tree has undergone severance.

This transition is significant because real property is defined as land and anything permanently attached to it, whereas personal property includes items that can be moved and are not permanently affixed to the land. Understanding severance is important in real estate as it can affect ownership rights and property values.

While conversion is a related term, it typically refers to the act of taking personal property and transforming it into real property, often through actions such as building on land. Partition relates to dividing co-owned real estate among owners, and abandonment implies giving up ownership rights rather than changing property classifications.