or example, a buyer may wish to also purchase the sellers

Chapter 2 : Personal Property Flashcards

or example, a buyer may wish to also purchase the seller's washing machine, dryer, or refrigerator. There is a special addendum that must be attached to the sale contracts when this occurs. This form (the Non-Realty Items Addendum, which you'll learn about in the Promulgated Contracts course) can be used as the bill of sale, and will help to avoid any confusion on what the buyers will receive when they move into the home.Never make assumptions about what is staying with the property or what is moving with the seller. You've got to ask these questions during the sales negotiation process so that everyone is on the same page.

In regards to leasing property: when a tenant makes a

physical alteration or permanent addition to the property they are renting, the altered or added object usually belongs to the landlord upon expiration of the lease agreement. In short, if a tenant makes an improvement to a residence, that upgrade stays with the property when the tenant's lease is over.For example, if a tenant installs new kitchen cabinets in their apartment, generally speaking, these cabinets are considered fixtures, and thus revert to the landlord's possession when the lease agreement expires. Thanks for the new cabinets, tenants!Trade fixtures are different from other fixtures in that the tenant can usually take trade fixtures with them when they leave. A trade fixture is personal property that is owned by and needed for a tenant's business. (For example, shelves that a store owner attaches to the wall when leasing a storefront in a strip mall.) It is not subject to the same rules of transfer as fixtures in general.Conversely, personal property can be turned into real estate. This is accomplished by making that piece of personal property a fixture.A fixture is a chattel bound to real estate and refers to an object that was once personal property, but which has now been firmly attached to the land in such a way that it becomes part of the real estate.For example, a person can purchase wood, nails, and paint, which are all personal property. But when the wood, nails, and paint are made into a fence on the land, the former items of personal property are now real estate. The items have been transformed from movable personal property into an attached fixture on the land, i.e., real estate.As an example, some homes have fireplaces with a screen that helps to prevent embers from flying out onto the floor or carpet. Most of those screens can be purchased at any of the big box hardware stores and are easy to replace.Those screens would be considered personal property.Intention is inferred from the nature of the item and blends annexation and adaptation. That might sound a little confusing, but the idea is that we can look at how the item is attached and the way in which it has been modified to suit its purpose or role for that specific property. After looking at these things, we can often infer whether the item was intended to be a fixture or personal property.Mobile homes are, for the most part, movable. Therefore, mobile homes fall into the personal property category.However, if a mobile home is sold in conjunction with a parcel of land or is permanently attached, then it may be considered real estate.In some states, such as Texas, in order to be considered real property, the home must be connected to utilities and permanently attached to land the owner of the home also owns.Texas requires mobile and manufactured homes to be classified as real property if they are affixed to a permanent foundation.

Usually, personal property can be removed without the aid of tools or heavy machinery. We can see this in the case of furniture, decorative items, utensils, wall hangings, and the like.With a comparatively minimal amount of effort, one can easily remove, shift, and replace chattel. This is not the case with a fixture, the removal of which generally involves a great deal of effort and can require professional assistance because of its permanent nature.Earlier, we mentioned an elevator as an example of a fixture, and it is easy to see how annexation might be used as a criterion for identifying it as such. The installation and removal of an elevator is a lengthy and often costly endeavor, which will probably require the aid of several professionals and a few days of labor.If an owner installs an elevator on their property, they generally intend to leave it there indefinitely unless it needs to be replaced.

Trade Fixture: personal property attached to real property

that is owned by and needed for a tenant's business

Adaptation: The use and modification of a particular item

for a specific use in a property Fructus Naturales: Trees,

bushes, grass, and uncultivated plants, usually considered to be real property because of their permanence Fructus

Industriales: Annually-cultivated crops generally considered

to be personal property; also known as emblements

Property can be thought of in two different terms: real or

personal.Recall that real estate is the land (including everything on, under, and above the land) + man-made improvements.So, simply put, personal property is all property that is not covered by real estate's definition.Personalty is effectively a synonym for personal property, but personalty refers to the actual, tangible object itself, such as a chair. It's also another word for chattels - hey, you know that word now!You likely won't need to know this distinction in real life, but if you ever find the term "personalty" on, let's say, an exam, then you'll know it refers to personal property.ssues spring up between sellers and buyers regarding items attached to property that may be removed from the home and what personal property may stay.For example, a person buying a ranch might assume the cattle are also being purchased ('cause remember, cattle = chattel).Someone buying a farm might think the crops will still be there. A person buying a store might believe that the inventory will stay with the store. It always helps to be as clear as possible about what is being transferred.It is possible to turn some elements of real estate into personal property. The most common way that real property is converted to personal property is through the act of severance.Severance is the act of separating some element of the real estate from the land. For example, a tree is real estate, but if the owner cuts down the tree, (literally severing it from the earth) the tree is now personal property, which can be carried off. And there it is, your very own personal tree branch! Whatcha gonna do with it?What is the definition of a fixture?Personal property that has been permanently attached to real estate Consider the grill mounted in cement in the back yard one more time. The idea of whether that grill is a fixture could possibly be contested if the owner had installed the grill in a different manner.Suppose a larger pipe had been mounted into the cement in the ground and the pipe to which the grill was attached slid into the larger pipe. It could be argued then that the intent was to remove the grill. Therefore, the grill and the smaller pipe would be considered to be personal property and not a fixture. The only part that would be a fixture would be the larger pipe that is mounted into the cement.

Good way to :If you turned a home upside down,

everything that does not fall is part of the house = Real Property. Everything is else is Personal property.More extreme examples of severance exist as well. Entire homes have been removed from the land and placed down on another piece of real estate.Consider the case of the

largest building that has ever been moved, which happened right here in Texas! The Fairmount Hotel in San Antonio was lifted off its foundation, moved down the street, (even over a bridge) and placed down in its new location. It can be seen across from the main entrance to Hemisfair Park.More extreme examples of severance exist as well. Entire homes have been removed from the land and placed down on another piece of real estate.Consider the case of the

largest building that has ever been moved, which happened right here in Texas! The Fairmount Hotel in San Antonio was lifted off its foundation, moved down the street, (even over a bridge) and placed down in its new location. It can be seen across from the main entrance to Hemisfair Park.Obviously, most real estate agents will not be selling homes with elevators, so consider a second example.Some homes have gas grills in the back yard. Some are on carts with wheels. It is easy to see that a grill on a cart is personal property that is not required to stay with the home upon a sale. However, if that grill is mounted on a post that is set in cement in the ground, then the process used to annex it to the property would make that grill real estate and would normally sell as a part of the property.Adaptation refers to the use and modification of a particular item for a specific use in a property. If one can show that an item was custom-designed for a specific use on the property, then it is likely that the item would be considered a fixture rather than a chattel.

A deed is:a legal document that is signed and delivered,

especially one regarding the ownership of property or legal rights.Although license holders might believe that they only sell real estate, personal property sometimes transfers with the purchase of real estate.There are two ways in which this can be resolved. Here in Texas, there is a type of professional known as a landman.Landmen are constantly searching for owners of mineral rights in an attempt to obtain a lease on those rights that can be passed on to oil or gas companies.So, one way to find out who currently owns the mineral rights would be for the seller or the buyer to hire a landman to help with the searching of records. Remember, there are some sellers out there who do not even know what they own when it comes to minerals. They could have a real "Beverly Hillbillies" situation on their hands.Another way to learn who has the mineral rights is to hire an oil and gas attorney who can research the issue and figure out the ownership situation.Minerals are a big deal in Texas. People that have the mineral rights are hesitant to give them up, and those who are buying property that contain minerals always ask about receiving the rights to the minerals.One thing to note is that the surface owner could be concerned about how much the person who has the mineral rights will mess up their surface through drilling and through traffic in and out of the property.One of the concerns that real estate license holders have when selling rural property is about who owns the mineral rights and how to find out.When oil and gas drilling increases, buyers become more interested in asking about mineral rights and what they would receive if they bought a particular property. In some cases, the receiving of the mineral rights is a deciding factor of whether or not to make an offer on a property.But in the majority of residential transactions involving a tract home, the agent will not have to negotiate the mineral rights because the seller probably doesn't have them to begin with. It is common for the land developer to retain the mineral rights when they sell land to a builder.Another difference between real property and personal property is the way in which each is transferred.Ownership to a parcel of real estate is transferred by a recordable