What does "annexation" refer to in property terminology?

In property terminology, "annexation" refers to the process whereby personal property is added to real property, transforming it into real property. This is significant because it typically changes the legal classification of the property; for instance, when a building is constructed on land, the materials used in the construction (which are originally personal property) become part of the real estate itself.

Understanding annexation is crucial in real estate law, as it affects issues related to ownership, property rights, and taxation. For example, once annexed, the previously personal property (like equipment or materials) can no longer be removed without potentially affecting the integrity or value of the real estate. This concept is essential for both those practicing in real estate and property law, as well as for property owners, as it influences property transactions and legal rights associated with the property.

The other options involve different concepts that do not accurately define annexation. For instance, the removal of fixtures pertains to the opposite concept of de-annexation, while the conversion of real property into personal property does not align with the notion of annexation. Additionally, the extension of property boundaries is related to legal concepts concerning property rights but is not synonymous with annexation as it's understood in property law.