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FIXTURES
There are five tests of fixture: 1)
Method
of Attachment: Is it nailed, welded or bolted down? Or is it simple leaning
against the building or hanging on the wall? 2)
Adaptability:
Is the item customized or can it be easily used in other building.?
Wall-to-wall carpeting would be considered a fixture because it has
been cut for a room of a particular size and shape, and the carpet
is attached to a track strip that is nailed to the
floor. 3)
Relationship:
Is relationship between tenant-landlord, a buyer-seller or
borrower-lender. 4)
Intension:
is indicated by action or agreement of the parties, weather it be
expressed ore merely implied. 5) Agreement: Court will also look to the existence of any agreements between the parties. For example: Is he item mentioned in the real estate listing or purchase contract?
Exception to Fixture rule:
There
are certain items that remain personal property after they have been
affixed to real property. If you rent to a business: These items are called ?trade fixtures?. Example are shelves, counters, cash registers used by business but not sold to customers.
If you rent to an individual(s): Id tenant installs room dividers, shelves, it may or may not be viewed as personal property. In many cases fixtures may be removed by the tenant, provide that premises are not damaged. |