What is a trade fixture?
A trade fixture is an article of personal property annexed or affixed to leased premises by the tenant as a necessary part of the tenant’s trade or business. In other words, they are articles placed in the buildings by the tenant to help carry out a trade or business.
Can a trade fixture be removed at the end of a lease?
At the termination of a lease, a tenant must leave most fixtures in the premises; however, trade fixtures are removable by the tenant before the expiration of the lease, and the tenant is responsible for any damages caused by their removal. However, a tenant cannot usually remove replacement fixtures, this is, improvements installed to replace worn-out ones. For instance, if a tenant installs a new bar to replace an old bar in a tavern the tenant leases, the tenant cannot remove the bar upon the termination of the lease.
What happens to the trade fixtures if they are not removed by the termination of the lease?
If the tenant fails to remove trade fixtures within a reasonable time of lease expiration, the fixtures will be considered abandoned and become the property of the landlord.
What are some examples of trade fixtures?
Some examples of trade fixtures include the following:
– Neon signs
– Decorative or functional light fixtures
– Stoves and refrigerators
– Jewelry display cases
What is the difference between a fixture and a trade fixture?
You can learn all about this by reading our article explaining what a fixture is here.
What else can help me prepare to pass my real estate licensing exam on my first attempt?
Other tips to help you pass your real estate licensing exam on your first attempt:
Also, check out our question of the day videos on our YouTube channel: