Kovats Real Estate School Practice Test

Which of the following represents a situation where personal property can become real property?

1. installing shelves

2. constructing a new fence

3. planting a tree in the ground

4. adding a decorative light fixture

The correct answer is: planting a tree in the ground

When personal property becomes real property, it typically involves something that has been permanently affixed to the land or an improvement that enhances the property's value. Planting a tree in the ground is a clear example of this process. Once the tree is planted, it becomes part of the real estate and is classified as real property because it is now a permanent fixture of the land. In contrast, while installing shelves and adding a decorative light fixture may involve attaching items to the property, they can sometimes be considered personal property if they can be removed without causing damage. Constructing a new fence is a different activity that also results in something being affixed to the property, but the focus is often more on the construction aspect rather than the change in property classification that occurs when a living element, like a tree, becomes inherently part of the natural landscape.