§ 336.2-107 — Goods to Be Severed From Realty; Recording
Plain-Language Summary
Goods that are attached to land (like timber, minerals, or a building to be removed) can be sold under Article 2 if the contract provides for them to be severed. The seller must sever minerals or structures; either party can sever growing crops or other things.
336.2-107 GOODS TO BE SEVERED FROM REALTY; RECORDING.
(1) A contract for the sale of minerals or the like (including oil and gas) or a structure or its materials to be removed from realty is a contract for the sale of goods within this article if they are to be severed by the seller but until severance a purported present sale thereof which is not effective as a transfer of an interest in land is effective only as a contract to sell.
(2) A contract for the sale apart from the land of growing crops or other things attached to realty and capable of severance without material harm thereto but not described in subsection (1) or of timber to be cut is a contract for the sale of goods within this article whether the subject matter is to be severed by the buyer or by the seller even though it forms part of the realty at the time of contracting, and the parties can by identification effect a present sale before severance.
(3) The provisions of subsection (1) of this section are subject to any third party rights provided by the law relating to realty records, and the contract for sale may be executed and recorded as a document transferring an interest in land and shall then constitute notice to third parties of the buyer’s rights under the contract for sale.
History:
1965 c 811 s 336.2-107; 1976 c 135 s 3
History: History: 1965 c 811 s 336.2-107; 1976 c 135 s 3