📌 What Is Annexation in Real Estate? Definition & Examples
Annexation in real estate is the process of attaching personal property to land or a structure, causing it to become real property. Once annexed, the item is legally considered a fixture and typically transfers with the property during a sale.
How Annexation Works
Annexation occurs when a movable item becomes permanently—or semi-permanently—attached to real estate. This physical attachment changes the item’s legal classification from personal property to real property.
Common examples of annexation include:
- Installing kitchen cabinets
- Mounting a TV bracket or built-in shelving
- Planting shrubs or trees in the ground
- Attaching a ceiling fan or light fixture
- Bolting down equipment in a commercial space
Once annexed, the item is considered part of the property—even if it was originally movable.
Why Annexation Matters in Real Estate
Annexation impacts:
- What items are legally included in a home sale
- Whether a seller may remove an item before closing
- How property value is determined
- Buyer and seller rights regarding fixtures
Annexation vs. Severance:
- Annexation: Personal → Real property (attachment)
- Severance: Real → Personal property (removal)
Example of Annexation in Action
A homeowner buys a brand-new dishwasher. While it is initially personal property, once the appliance is installed, plumbed, and built into the cabinetry, it becomes a fixture through annexation. It now remains with the home unless excluded in the contract.
Why Annexation Matters for FSBO Sellers
- Clarifies which items must stay with the home
- Helps avoid disputes about attached vs. removable items
- Ensures accurate MLS listing descriptions
- Protects sellers who want to exclude certain fixtures
FSBO sellers should disclose all annexed items and list exclusions in writing to avoid issues at closing.
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