Attachment, severance, and the bill of sale

Attachment changes classification

Personal property can become real property through attachment, also called annexation, when installed as a permanent part of land or a building. Loose lumber is personal property; lumber incorporated into a permanent attached deck becomes part of the real estate. A cabinet installed as a permanent improvement ordinarily becomes a fixture.

Physical connection matters, but a screw alone is not a complete legal test. Consider method of attachment, adaptation, objective intent of permanence, the parties' relationship, and their agreement. A portable plug-in fan normally remains personal property; a permanently installed ceiling fan ordinarily is a fixture. Unspoken wishes do not establish objective intent.

Severance reverses the direction

Severance changes real property into personal property by detaching it. A growing shade tree is real property; logs produced when the owner lawfully cuts it down are personal property. An installed cabinet lawfully removed for separate sale is another example. A plan to remove an item is not physical severance. Removing a promised fixture does not excuse a seller's contractual duty to convey it.

A bill of sale transfers personal property

A bill of sale documents a transfer of ownership of personal property. When a buyer purchases a house and separately buys the seller's freestanding dining table, the deed conveys the real estate and a bill of sale documents the table's transfer. Identify the parties and the particular goods clearly, using distinguishing details when useful. A bill of sale for the table does not convey land. A fixture conveyed with the real estate ordinarily need not be treated as a separate movable item.

Actual rights can depend on the agreement and applicable law; resolve disputed inclusions or exclusions in writing before closing.

Ask: What is the item's present classification? Has attachment or severance changed it? What document fits its transfer? Classification can change without ownership changing.