Texas Real Estate State Practice Exam

What is Severed or Severance in real estate?

1. Process of attaching personal property to real property

2. Real property being removed becoming personal property

3. Acquiring trade fixtures by non-removal prior to termination of lease

4. Acquiring land by non-removal prior to termination of lease

The correct answer is: Real property being removed becoming personal property

Severed or severance in real estate refers to the process where a fixture or an item that was once considered part of the real property is removed, thus converting it into personal property. This concept is crucial in real estate transactions and property law, as it affects ownership rights and the value of the property being bought or sold. When a fixture—such as appliances, lighting, or other installations—becomes severed, it is typically removed from the property, resulting in its classification as personal property. This distinction is important because personal property is generally not included in the sale of real estate unless specifically mentioned in the purchase agreement. Thus, understanding severance helps clarify what is included in a property transaction and assists in preventing legal disputes over ownership rights. The other options focus on attaching property or concepts related to lease agreements, which do not define the act of severance correctly. Consequently, identifying severance as the transition from real property to personal property aligns accurately with the principles of real estate law.