Texas Real Estate State Practice Exam

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What is Annexation?

A process of detaching personal property from real property
Acquiring land by non-removal prior to termination of lease
Process of attaching personal property to real property making it a fixture
Acquiring trade fixtures by removal

The correct answer is: Process of attaching personal property to real property making it a fixture

Annexation refers to the process of attaching personal property to real property in such a way that it becomes a fixture. This indicates that once personal property is permanently affixed to the real estate, it loses its standing as personal property and gains the legal status of a fixture. Fixing items like light fixtures, built-in appliances, or shelves to a property not only changes their classification but also affects aspects such as ownership and transferability during real estate transactions. Understanding annexation is crucial for real estate professionals, as it determines what is included in a property sale and can impact property value and rights of possession. In the context of the other options, detaching personal property from real property is actually the reverse of annexation. Acquiring land by non-removal prior to termination of lease doesn’t accurately describe the concept of annexation. Lastly, acquiring trade fixtures by removal pertains to items that are typically used in a business setting and can be removed, which again does not align with the concept of annexation.