What is the term for the act of converting real property into personal property?

The act of converting real property into personal property is referred to as severance. This term specifically describes the process where an item that is fixed to land, such as a tree or a building, is removed, thereby transforming it from being considered real property (which is land and anything permanently attached to it) to personal property (which is movable and not permanently affixed to land). This action is important in real estate because it can affect ownership rights, taxation, and legal classifications of property.

Accretion refers to the gradual increase of land due to natural forces, erosion involves the wearing away of land and its features, and avulsion is the sudden removal of land by water, none of which pertain to the conversion of real property into personal property in the same manner as severance. Understanding the concept of severance is crucial for real estate professionals as it influences property rights and transactions.