Hawaii Pre-Licensing National Practice Exam

Which term best describes personal property that, by its attachment to real property, is regarded as real estate?

1. Fixtures

2. Easements

3. Leases

4. Encumbrances

The correct answer is: Fixtures

The term that best describes personal property that, by its attachment to real property, is regarded as real estate is "fixtures." Fixtures are items that were originally personal property but have been permanently attached or affixed to the land or a building in such a way that they are considered part of the real estate. This transition from personal property to real property is significant in real estate law because it affects ownership and the rights associated with the property. For instance, when a homeowner installs a built-in bookcase or a ceiling fan, these items are classified as fixtures because they are permanently connected to the property. When the property is sold, these fixtures are typically included in the sale unless explicitly excluded in the purchase agreement. The other options are relevant terms, but they refer to different aspects of property and real estate. Easements relate to the right to use someone else's land for a specific purpose; leases pertain to an agreement to rent property; and encumbrances involve claims or liabilities against the property that can affect ownership. Each of these plays a unique role in the broader field of real estate but does not define the situation where personal property becomes part of real estate through attachment.