Minnesota State Real Estate Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Minnesota State Real Estate Test with questions designed for better comprehension. Use flashcards, access multiple choice questions with detailed explanations, and boost your chances of passing successfully.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What process allows real property to become personal property?

Severance
Transmission
Transfer
Assimilation

The correct answer is: Severance

The process that allows real property to become personal property is known as severance. Severance occurs when an item that is considered to be part of real estate (real property) is detached or removed, making it personal property. For example, if you have a tree that is planted in the ground (which is real property), cutting it down and removing it from the land transforms it into personal property. This process is particularly important in understanding how property classifications can change, as it has implications for ownership rights, the sale of property, and taxation. The distinction between real and personal property is significant in real estate law because it affects how property transactions are conducted, including the processes of buying, selling, and leasing. The other options, while related to property, do not pertain to the change of property classification from real to personal. Transmission refers to the transfer of ownership or rights, which does not inherently involve changing property classification. Transfer is a more general term that encompasses various methods by which property can change hands but does not specifically deal with the alteration of property status. Assimilation typically relates to the integration of property or concepts but does not imply a transformation of real property to personal property.