What does 'conversion' refer to in real estate?

In real estate, 'conversion' specifically refers to the act of changing real property into personal property. This process involves transforming an asset that is affixed to the land (real property) into something that can be moved or owned separately (personal property). For example, if a homeowner decides to remove a built-in fixture, such as a chandelier or a bathtub, from their home and sell it, that item goes from being considered part of the real property to personal property. This distinction is crucial in real estate transactions, particularly concerning ownership rights and what is included in a sale.

The other choices, while related to different aspects of real estate, do not define conversion. Changing residential properties into commercial involves a different process known as rezoning or repurposing. Modifications of lease agreements relate to the terms of tenancy rather than the classification of property. Facilitating property sales encompasses a wide range of activities, but again, it does not involve the conversion of property types in the way described above.