Certified Residential Appraiser Practice Exam

An article that was once personal property but has since been installed to land or a building in a permanent manner is known as what?

1. Chattel fixture

2. Capital improvement

3. Real property

4. Appurtenance

The correct answer is: Real property

The correct term for an article that was once personal property but has been permanently affixed to land or a building is "real property." When personal items are installed in such a way that they become an integral part of the property, they transition from being personal property to real property. This change in classification is significant because it affects how the item is treated in terms of ownership, valuation, and taxation. For example, light fixtures, built-in appliances, and plumbing systems are all considered real property once they are installed in a building. This distinction is important for appraisers and property assessors as they determine the overall value of a property. While the other options reflect related concepts, they do not precisely define the scenario presented in the question. A chattel fixture refers to an item of personal property that has been attached to real estate in a manner that suggests it is intended to remain, but it does not fully encompass the transition to real property. Capital improvement pertains to significant upgrades or renovations that enhance a property's value, but it does not specifically address the change in classification from personal to real property. An appurtenance is a right or privilege associated with a property, but it does not refer to the physical transformation of an item from personal to real property