FIXTURE
An article in the nature of PERSONAL PROPERTY which has been so annexed to the realty that it is regarded as a part of the real property. That which is fixed or attached to something permanently as an appendage and is not removable.
A thing is deemed to be affixed to real property when it is attached to it by roots, imbedded in it, permanently resting upon it, or permanently attached to what is thus permanent, as by means of cement, plaster, nails, bolts, or screws.
Goods are fixtures when they become so related to particular real estate that an interest in them arises under real estate law, e.g. a furnace affixed to a house or other building, counters permanently affixed to the floor of a store, or a sprinkler system installed in a building. Fixtures possess the attributes of both real and personal property.
Types
Fixtures are generally classified as agricultural,
domestic, ornamental, or trade. Agricultural
fixtures are articles that are annexed for the
purpose of farming. Domestic and ornamental
fixtures are objects that a tenant may attach to a
unit in order to render it more habitable. Stoves,
shelves, and lighting equipment are types of
domestic fixtures. Ornamental fixtures include
curtains, chimney grates, blinds, and beds fastened
to walls.
Trade fixtures are articles affixed to rented
buildings by merchants, in order to pursue the
business for which the premises are occupied.
They encompass those items that merchants
annex to the premises to facilitate the storage,
handling, and display of their stock for sale to
the public—such as booths, bars, display cases
and lights—that are usually removable without
material damage to the premises. The objective
of this rule is to promote trade and industry. A
tenant, however, has no right to disengage a
trade fixture if its detachment would cause substantial
damage to the premises.
Requirements
The article must be physically annexed to the
realty or something appurtenant thereto in
order for it to become a fixture. Annexation to
land occurs when the object is permanently
affixed to the property through the application
of plaster, cement, bolts, screws, nuts, or nails.
The attached article must also be adapted to
the intended use or purpose of the realty so that
it effectively becomes inseparable from the land
itself.
The intention of the person who attaches the
article determines whether or not the article is a
fixture. The individual is not required to verbalize
the intent, although the courts will evaluate
such expressions. The courts consider the tenant’s
intent, which is inferred from all of the
facts and circumstances concerning the actual
annexation of the object, such as the nature of
the article affixed, the method of annexation,
and the extent to which the object has been integrated
into the real estate.
Agreement of the Parties
The parties may enter into an agreement in
regard to the nature of an item to be utilized with
realty. Statutes confer this right in some jurisdictions,
and these agreements are enforceable whenever
the rights of third persons are not violated.
The terms of a lease often define the rights of
a LANDLORD AND TENANT in regard to fixtures.
If the lease unequivocally stipulates that the tenant
has the right to remove particular articles,
the fact that the removal will damage the rented
premises is immaterial.
Fixtures are usually attached to rented premises
for the tenant’s benefit without any intention
of increasing the value of the landlord’s
property. Generally when no agreement exists
between the parties, articles annexed by the tenant
may be detached by the tenant, during the
term of the tenancy, provided such can be done
without damaging the premises.
The law favors the tenant’s position that certain
articles should be regarded as personal
property rather than as part of the realty. Such
improvements are those made to the rented
premises by a tenant for personal enjoyment and
use and, therefore, should retain their character
as personal property.
Time of Removal
If a trade fixture is not removed from the
premises within the period specified in the lease,
it becomes part of the realty and the landlord
acquires title to it. A tenant’s failure to remove
domestic fixtures within the proper period will
usually have the same result. The tenant is presumed
to have abandoned the fixtures by failing
to remove them.
The amount of time allotted to the tenant to
remove the fixtures varies. In some jurisdictions,
the objects must be removed during the term of
the tenancy. The right to remove the articles terminates
with tenancy, in some states; whereas, in
others, the tenant may remove the articles
within a reasonable time after the expiration of
the tenancy. The facts and circumstances of each
case determine what period constitutes a “reasonable
time.”
The landlord can expressly consent to the
tenant’s removal of the fixtures even after the
conclusion of the lease term or the surrender of
possession. If the owner persuades the tenant to
leave fixtures on the premises for some particular
objective, he or she cannot acquire title to the
fixtures because the tenant has postponed their
removal.
In most states, if a tenant accepts a new lease
that contains no provisions concerning articles
attached during tenancy under the prior lease,
the tenant will lose the right to remove them. At
the expiration of the initial lease, the fixtures
become part of the realty. By accepting the new
lease, the tenant acquires a temporary interest in
both the fixtures and the land.
Generally, an extension of the original lease
does not deprive the tenant of the right to
remove fixtures. The tenant’s right of removal is
lost, however, if he or she merely stays or holds
over without extending the current lease.
If the landlord prevents the tenant from
detaching fixtures to which he or she is entitled,
the time for removal is extended until it can be
accomplished. If the landlord wrongfully ends
the tenancy and the tenant is ousted, the tenant
has a reasonable time in which to remove his or
her fixtures.
After the tenancy expires, a landlord can
order the tenant to unfasten unwanted fixtures.
If the tenant fails to do so, the landlord can have
the fixtures removed and charge the tenant for
expenses incurred in their removal.
