Fixtures Improvements

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

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.
Built-In Appliances: Items like a built-in microwave or dishwasher, initially personal property, become fixtures once installed in the kitchen.
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.

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

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

Real Estate Basics: Fixtures Improvements Fundamentals Quiz

### Which of the following best defines a fixture in real estate? - [x] Personal property that has been attached to the land or a building and considered part of the real estate - [ ] Movable property like furniture - [ ] Property that can be removed without damage - [ ] Items intended solely for personal use > **Explanation:** Fixtures are typically personal property that, once attached to the land or building, are considered part of the real estate and are usually included in property sales. ### What is one condition that does NOT determine if an item is a fixture? - [ ] The intent of the parties - [ ] The relation of the parties - [x] The purchase price of the item - [ ] Method of annexation > **Explanation:** The purchase price of an item does not affect whether it is considered a fixture. Determining factors include the intent, method of fixture's attachment, and relation of parties, among others. ### Which best describes 'trade fixtures'? - [ ] Fixtures that remain with the property permanently - [x] Fixtures installed by a tenant for business purposes and removable upon lease end - [ ] Items left behind after moving out - [ ] Any permanent modification made by a tenant > **Explanation:** Trade fixtures are items installed by a tenant for the purpose of conducting business and can be removed by the tenant usually without significant damage to the property. ### What key aspect affects the adaptation of an article to the building? - [x] Its utility or essential function within the building - [ ] Its resale value after installation - [ ] Its color and aesthetics - [ ] The brand and make of the fixture > **Explanation:** The adaptation of an article concerns how crucial it is for the function of the building, hence determining if it's a fixture. ### How does the method of annexation influence fixture status? - [ ] If an item remains new after being attached - [ ] Based on color and blending with the home decor - [x] Whether the attached item causes damage when removed - [ ] The brand of the attaching mechanisms > **Explanation:** If removing the item causes damage to the property it indicates that the item is a fixture, as its attachment was intended to be permanent. ### Which of these items is most likely considered a fixture? - [ ] A wall-mounted television not included in sale terms - [ ] A plugged-in refrigerator - [x] Built-in kitchen cabinets - [ ] Floor rugs > **Explanation:** Built-in kitchen cabinets are typically considered fixtures as they are affixed and designed to remain as part of the property. ### Is a ceiling fan considered personal property or a fixture? - [x] Fixture, once installed - [ ] Personal property, regardless of the method of installation - [ ] Neither, it varies by region - [ ] Combined category with other appliances > **Explanation:** A ceiling fan becomes a fixture once it is installed and hardwired into the electricity of the dwelling. ### What typically defines the relationship criterion in determining if an item is a fixture? - [x] The business or tenant-landlord relationship and expectations tied to installations - [ ] The age of the fixture - [ ] Size and weight considerations - [ ] Amortization and depreciation schedules > **Explanation:** The relationship criterion often involves examining tenant-landlord dynamics, including what fixtures are expected to stay with the premises after the lease agreement. ### Are built-in appliances considered fixtures? - [x] Yes, because they are adapted to and integral for property utility - [ ] No, because they can be replaced easily - [ ] Depends on their use in a commercial or residential setting - [ ] Only partially if semi-attached > **Explanation:** Built-in appliances are usually considered fixtures as they are installed the prowess designed for permanent retention within kitchen/miscellaneous household amenities. ### Which party generally determines the fixture status during property sale? - [ ] The contractors - [x] The buying and selling parties based on common understanding or dispute resolution - [ ] Local governing bodies exclusively - [ ] Only real estate investors > **Explanation:** Fixture status is usually stipulated and agreed upon between the two parties involved in the property sale through contracts and negotiations.