What are Fixtures Improvements?§
Fixtures Improvements are traditionally defined in real estate as personal property items that have been affixed to land or a building such that they become part of the real property. This determination can be nuanced, involving various considerations and tests.
Examples of Fixtures Improvements§
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Chandeliers: A chandelier installed in the dining room of a house is considered a fixture. While it may originally have been personal property, once attached to the ceiling, it becomes part of the real estate.
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Built-In Appliances: Items like a built-in microwave or dishwasher, initially personal property, become fixtures once installed in the kitchen.
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Shelving Units: Shelving that is bolted into a wall in a commercial or residential setting moves from being personal property to a fixture.
Frequently Asked Questions (FAQs)§
What factors determine whether an item is a fixture?§
- Intent of the Parties: The intention behind the attachment — whether it was meant to stay permanently — is a crucial determinant.
- Method of Annexation: How the item is attached to the property. If removal involves damage, it is likely a fixture.
- Relation of the Parties: Particularly in a tenant-landlord situation, the nature of business relations can influence the classification.
- Adaptation of the Article: If an item is specially adapted or essential to the functioning of the building or land use, it is often considered a fixture.
Is a ceiling fan a fixture or personal property?§
A ceiling fan, once installed and hardwired into the electrical system of a house, becomes a fixture. It is intended to remain with the property and facilitates its usefulness.
Can fixtures be considered part of a tenant’s business?§
Yes, fixtures can particularly relate to business tenants. These are known as “trade fixtures,” which tenants can often remove upon the end of their lease, provided no major property damage occurs.
Do all fixtures stay with the property when it is sold?§
Generally, yes. Fixtures are considered part of the property sale unless explicitly excluded in the purchase agreement.
Related Terms§
Personal Property§
Refers to items that are moveable and not attached permanently to the real property. Examples include furniture, electronics, and unattached appliances.
Trade Fixtures§
Fixtures installed by a tenant as part of a business. These remain the property of the tenant and can be removed upon lease expiration.
Real Property§
Encompasses land and everything permanently attached to it, including buildings and fixtures.
Annexation§
The process of attaching personal property to real estate, converting it into a fixture.
Online Resources§
- Investopedia - Real Estate
- Nolo’s Real Estate Law Center
- Rocket Lawyer - Understanding Fixtures in Real Estate
References§
- West’s Encyclopedia of American Law. (2008). Real Estate.
- Black’s Law Dictionary. (2019). 11th Edition.
Suggested Books for Further Studies§
- “Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- “The Essentials of Real Estate Law” by Lynn T. Slossberg
- “Fixtures In Real Property” by H. J. Mannhardt
