Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 2-107
Goods to Be Severed From Realty: Recording
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 1
Section 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 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.