California Real Estate Practice Exam

Which of the following would complete this (true) statement? Property is:

1. Personal if a fixture

2. Personal if not real

3. Real if movable

4. Real if tangible

The correct answer is: Personal if a fixture

The correct completion of the statement "Property is:" is found in the choice that emphasizes the nature of property classification. Property is categorized into two main types: real property and personal property. Personal property generally refers to movable items that are not permanently attached to or associated with the land. Fixtures, on the other hand, begin as personal property but become real property when they are permanently attached to the land or a structure. Therefore, the correct statement regarding fixtures is that they transform into real property, rather than remaining personal property. The other choices do not accurately reflect the definitions or characteristics of property classifications. For example, while it is true that something not categorized as real is personal property, the phrase "personal if not real" is a bit too simplistic and potentially misleading in a legal context. Similarly, the concept of "real if movable" does not hold true; real property is inherently tied to its immobility and permanence. Finally, the statement "real if tangible" could mislead since both real property and personal property can be tangible, which does not correctly capture the distinction between them. Thus, while fixtures are personal when they are not attached, they become real property upon attachment, reinforcing the nature of property classifications.