Which term is a nonmaterial interest in real property?

• A. Trade Fixtures
• B. Adverse Possession
• C. License
• D. Incorporeal Interest

Answer: (D)

Nonmaterial interests are intangible rights attached to real property—rights you don’t physically possess, but that affect how the land can be used. This kind of right is called an incorporeal interest.

Trade fixtures are physical property attached to the land for a business and are considered tangible personal property that may become part of real property. Adverse possession describes how someone can acquire title through long-term possession, not an intangible right. A license is a permission to use the land and is a nonpossessory right, but the broader term for these intangible land rights is incorporeal interest. Therefore, the term that best fits a nonmaterial interest in real property is incorporeal interest.