Paralegal Certification PrepTorts and Property LawEasy

A homeowner installs a complex, custom-designed solar panel system on their roof. The system is wired directly into the house's electrical grid and is designed to provide all of the home's power. If the homeowner sells the house, what is the most likely classification of the solar panel system?

  1. APersonal property, as it can be theoretically removed.
  2. BReal property, as it is permanently affixed and integral to the home's function.
  3. CA trade fixture, due to its specialized nature and installation.
  4. DA fixture, but only if explicitly mentioned in the sales contract.
Show answer & explanation

Correct answer: B. Real property, as it is permanently affixed and integral to the home's function.

Items that are permanently affixed to real estate and intended to be part of the property are generally considered real property. The solar panel system is wired into the house and essential for its intended power supply.

Why the other options are wrong

  • A. While theoretically removable, its permanent attachment and purpose make it real property, not personal property.
  • C. Trade fixtures are items installed by a tenant for business purposes, which does not apply to a homeowner's installation on their own residence.
  • D. While a contract can clarify, the inherent nature of the installation generally classifies it as real property regardless of specific mention.

Real Property

Land and anything permanently attached to it, including buildings, fixtures, and natural resources.

  • Includes land and improvements thereon.
  • Transfers with the land unless specifically excluded.
  • Distinguished from personal property by attachment and intent.

Memory trick: Real property is rooted, personal property is free to move.

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