In considering the differences between real and personal property, it is necessary to distinguish between a fixture and personal property.
Fixtures Almost any item that has been added as a permanent part of a building is considered a fixture. During the course of time, the same materials may be both real and personal property, depending on their use and location.
Legal tests of a fixture
- Method of attachment
- Adoption to Real Estate
- Agreement between the parties
A special category of fixture includes personal property used in the course of business. This personal property, when attached to rented space or building or used in conducting a business is personal property that remains the personal property of the Renter.
Trade fixtures must be removed on or before the last day the property is rented. The Tenant is responsible for any damage caused by the removal of the trade fixture. Trade fixtures that are NOT removed become the real property of the Landlord.