84-2-107. 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.
History: L. 1965, ch. 564, § 24; L. 1975, ch. 514, § 3; January 1, 1976.
KANSAS COMMENT, 1996
Subsection (1) provides that a contract for the sale of minerals, oil, gas, or structures is a contract for the sale of goods when the seller is to sever or remove the items from the land. Official Comment 1 states that such transactions are considered contracts for the sale of land if the buyer is to do the severing or removing. Subsection (2) provides that a contract for the sale apart from the land of growing crops, timber, or similar things not included in subsection (1) is a contract for the sale of goods regardless of whether they are to be severed by the buyer or the seller. Fixtures are included under subsection (2) as things "capable of severance without material harm" to the realty. See Official Comment 2 to this section.
Law Review and Bar Journal References:
"U.C.C.: The Farmer is Not a Merchant Under the U.C.C.—Promissory Estoppel to Avoid the Operation of the Statute of Frauds," Mark A. Buck, 16 W.L.J. 230, 234 (1976).
CASE ANNOTATIONS
1. Severed crops are farm products, not "growing crops"; if in farm debtor's possession, financing statement needs no property description. In re Roberts, 38 B.R. 128, 129, 132 (1984).
2. Perfected security interest in growing crops remains attached following redemption period in mortgage foreclosure action. Moritz Implement Co. v. Matthews, 265 Kan. 179, 188, 959 P.2d 886 (1998).
Law Review and Bar Journal References:
"Electronic Commerce in Kansas: Contract Formation and Formalities Under Article 2," Christopher R. Drahozal, 68 J.K.B.A. No. 5, 22 (1999).
|
|