What does severance refer to in real estate?

Severance in real estate refers specifically to the process where real property is converted into personal property. This occurs when a physical item that is considered a part of real estate is removed from the land or improvement, thereby severing its attachment to the real estate. A common example is when a tree is cut down or when fixtures like a chandelier are taken out of a house before it is sold. This transformation means that the item, once part of the real estate, is now classified as personal property that can be moved and sold separately.

The focus of severance is on the action of detaching an item from the land, which effectively changes its classification and ownership status. Understanding severance is crucial for real estate professionals, as it impacts how property is defined and valued for transactions.