What is the term for the process of converting real property into personal property?

The process of converting real property into personal property is known as severance. Severance occurs when something that was previously attached to the land or a building, such as trees, minerals, or structures, is removed, transforming it from real property (which is immovable and includes land and anything permanently attached to it) to personal property (which is movable and not permanently attached).

For instance, if a homeowner cuts down a tree on their property, that tree becomes personal property once it is severed from its roots in the ground. This distinction is important in real estate because it affects ownership rights, transferability, and the methods of taxation.

Conversion, while also related to the idea of changing property types, generally refers to the broader act of changing ownership from one type of property to another, which can include anything from real to personal property or vice versa. Thus, severance specifically pinpoints the act of detaching an item from real property, making it the correct term for this specific process.