Which statement accurately describes fixtures and trade fixtures?

• A. Fixtures are removable; trade fixtures transfer with the property
• B. Fixtures transfer with the property; trade fixtures are removable by a business tenant
• C. Both fixtures and trade fixtures transfer with the property
• D. Trade fixtures are attached permanently and become property of the buyer

Answer: (B)

Fixtures are items that are permanently attached to the real estate and thus become part of the property, transferring with the deed to the new owner unless a contract says otherwise. Think of built-in cabinets, sinks, or light fixtures that are fixed into the structure. Trade fixtures, in contrast, are installations a business tenant adds to operate the business. They remain the tenant’s personal property and are removable when the lease ends, as long as removing them doesn’t cause damage to the property. Therefore, the property transfers with the fixtures, while trade fixtures can be removed by the tenant.