When personal property is affixed to the land, it becomes part of the real property under the doctrine of fixtures. CC §§658, 660. As such, it is subject to any subsequently executed real property mortgage or deed of trust and also is subject to previously executed mortgages or deeds of trust under the doctrine of after-acquired title. CC §2930; Commercial Bank v Pritchard (1899) 126 C 600; Hill v Gwin (1875) 51 C 47. Thus, a typical residential mortgage covers not only the land but also the house and its built-in appliances.
A real property mortgage or deed of trust in and of itself does not encumber personal property that is not affixed to the land. McLeod v Barnum (1901) 131 C 605. A beneficiary who seizes or sells such personal property may be liable for conversion. Strutt v Ontario Sav. & Loan Ass’n (1972) 28 CA3d 866. A creditor who wants a security interest in personal property as well as real property should execute a security agreement and file that agreement in accordance with the Commercial Code. Com C §§9201, 9203; Freedland v Greco (1955) 45 C2d 462; Oxford St. Props. v Rehabilitation Assocs. (2012) 206 CA4th 296. On issues that arise when the collateral consists of both real and personal property (“mixed collateral”),
A lease of equipment or personal property may create a security interest under certain circumstances, dependent on the facts of each case. See Com C §1203.