New York State Real Estate Salesperson Licensing Exam

Which type of severance refers to the separate ownership of land and buildings?

1. Fixture

2. Real estate

3. Personal property

4. Chattel

The correct answer is: Personal property

The situation described pertains to the distinction between the ownership of land and the buildings situated on that land. The correct answer highlights the concept of personal property. In real estate, personal property refers to movable items that are not fixed to a particular piece of land. When land and buildings are owned separately, it typically indicates that the buildings could be considered personal property if they are not permanently affixed to the land. In this context, when buildings are treated as separate from the land they occupy, they can be classified as personal property under certain circumstances. This is often relevant in scenarios where a developer owns the land but leases or sells the buildings on it, allowing for a different classification compared to real property, which includes both land and any structures permanently attached. The other types mentioned—fixture, real estate, and chattel—pertain to different aspects of property ownership. Fixtures are items that were once personal property but have been attached to the land, thereby becoming part of real estate. Real estate refers to land and any structures permanently affixed to it. Chattel is often used to describe movable personal property, but in everyday use, "personal property" encompasses a broader category, including items that may not qualify as chattel. Understanding these distinctions