What is the process of converting personal property into real property called?

The process of converting personal property into real property is called annexation. This process involves attaching or integrating personal property, such as building materials or fixtures, to real property (land and structures) so that it becomes a permanent part of the real estate. For example, when a homebuilder installs a heating system in a house, the system, originally considered personal property, becomes part of the real estate through the process of annexation.

Understanding this concept is crucial in property management and real estate, as it affects ownership rights and the treatment of property during transactions. If something has been annexed, it is generally included in the sale or transfer of the real estate, while personal property, unless specified otherwise, typically does not remain with the property when sold. The other terms listed, such as adaptation, intent, and covenant, serve different purposes within real estate and property management but do not pertain to the conversion of personal property into real property.