What is classified as chattel real?

Chattel real refers specifically to personal property that is associated with real estate and is typically movable. This category includes items such as leases or other rights that can be conveyed alongside the sale of real property but do not become part of the real estate itself.

When considering the choices given, the classification of chattel real accurately reflects the definition because it emphasizes the connection between the personal property (like leases) and the real estate. This relationship clarifies that while the property may not be permanently fixed to the land or structure, it still holds value and relevance in real estate transactions.

Permanent fixtures, by contrast, are considered part of the real estate and are not classified as chattel real because they enhance the value of the property itself. Real estate under lease, while it may sound like it might align with chattel real, represents a right to use the property rather than personal property in itself. Bank-owned properties represent a different category altogether focused on ownership rather than the classification of property types.