Legal Definitions - fixture

A fixture is an item that was once considered personal property (meaning it was movable and not permanently attached to land or a building) but has become so securely and permanently attached to real estate that it is now legally considered part of the real estate itself. This means that when the real estate is sold, the fixture is generally included in the sale and transfers to the new owner. Similarly, if a property is rented, tenants typically cannot remove fixtures when their lease ends.

An important exception exists for trade fixtures. These are items installed by a tenant specifically for the purpose of conducting their business. Even though they might be attached to the property, trade fixtures are generally considered the tenant's personal property and can be removed by the tenant at the end of the lease, provided they repair any damage caused by the removal.

Courts determine whether an item is a fixture (or a trade fixture) by considering several factors, including:

• How securely the item is attached to the real property.
• The item's purpose and its relationship to the overall use or function of the real property.
• The intent of the person who installed the item (whether they intended it to be permanent or temporary).

Examples:

• Custom-Built Kitchen Island with Integrated Sink: Imagine a homeowner installs a custom-designed kitchen island that is permanently plumbed with a sink and garbage disposal, and securely bolted to the floor. This island, initially composed of separate materials and appliances, becomes a fixture. It is integrated into the home's structure and utility system, enhancing the kitchen's functionality and value. If the house were sold, the new owner would expect the island to remain as a permanent part of the kitchen, as it's no longer just furniture but an integral component of the real estate.

• Solar Panels Permanently Installed on a Home's Roof: A homeowner decides to install solar panels on their roof to generate electricity. These panels are professionally mounted and securely fastened to the roof structure, and their wiring is integrated into the home's electrical system. Although the panels were once separate, movable items, their permanent attachment and integration into the home's infrastructure mean they are now considered fixtures. They are intended to be a long-term improvement to the property, and if the home is sold, the solar panels would transfer with the property to the new owner.

• Specialized Brewing Tanks in a Rented Microbrewery (Trade Fixture): A tenant leases a commercial space to open a microbrewery. They install large, specialized brewing tanks that are bolted to the floor for stability and connected to the building's plumbing and electrical systems. These tanks are essential for the tenant's specific business operations. Because these tanks are installed by the tenant for the purpose of their trade or business, they are considered "trade fixtures." This means that even though they are attached to the property, the tenant typically has the right to remove them when their lease ends, provided they repair any damage caused by the removal.