What does severance refer to in property terms?

Severance in property terms specifically refers to the act of converting real property into personal property. This might occur, for example, when a homeowner removes a fixture, such as a chandelier, that is considered a part of the property and turns it into personal property. This process typically involves detaching something that is permanently affixed to a property, indicating a change in classification from real to personal property.

Understanding severance is crucial in property law because it affects ownership rights, taxes, and the legal status of assets. Real property typically includes land and anything permanently attached to it, while personal property encompasses movable items not tied to the land. Recognizing the significance of this distinction helps clarify property transactions and ownership issues.

The other options do not accurately reflect the definition of severance. For example, converting personal property into real property involves a separate process called annexation, while the act of removing crops from the soil pertains more to agricultural practices than property classification. Lastly, dividing land among heirs addresses inheritance rather than the conversion of property types.