Texas Real Estate State Practice Exam

What is Accesion in real estate?

1. Process of detaching personal property from real property

2. Acquiring real property by purchase

3. Acquiring trade fixtures by removal

4. Acquiring trade fixtures by non-removal prior to termination of lease

The correct answer is: Acquiring trade fixtures by non-removal prior to termination of lease

Accession in real estate refers to the legal doctrine where a person acquires property rights to something that has been added to their property. In this context, option D pertains to the idea that a tenant can acquire ownership rights over trade fixtures when they are not removed before the end of the lease period. Trade fixtures are items that a tenant installs in a rental space for business purposes. By not removing these fixtures prior to the termination of the lease, the tenant may inadvertently give up their right to remove them, thus allowing the property owner to claim those fixtures as part of their real property. This principle of accession allows a landlord to acquire title to the trade fixtures that have become part of the property due to the tenant's failure to remove them in a timely manner. The other options do not accurately reflect the concept of accession in real estate. The first option discusses the detachment of personal property, which does not align with how accession works. The second option implies a straightforward purchase of real property, which is a different concept altogether. The third option touches on trade fixtures but focuses on their removal rather than their retention through non-removal. Thus, the focus on non-removal leading to acquisition accurately reflects the principle of accession.