What does "severance" mean in relation to property?

Severance refers to the act of separating a portion of real property, which effectively changes its classification from real property to personal property. This often occurs when an item that is considered a fixture—such as a built-in appliance or landscaping—is removed from the property. Once severed, that item is no longer considered part of the real estate, and it is treated as a personal property asset.

Understanding severance is important in real estate, as it can impact ownership rights, valuation, and taxation of the property. For instance, if a homeowner removes a built-in microwave from the kitchen when selling their home, that appliance, originally part of the real estate, is then classified as personal property that may be sold separately.

The other choices do not accurately define severance. Merging two parcels of land refers to consolidation rather than separation. Removing property from the tax rolls and transferring ownership involve different legal and financial processes unrelated to the concept of severance.