Real vs personal property
Trade fixture
An item a business tenant attaches to conduct their trade, and may remove
Restaurant hoods, salon chairs, bank vaults, shop shelving. Attachment would normally convert them into fixtures, but the law makes an exception for business tenants so commerce is not penalised for fitting out a space. The tenant must remove them before the term ends and repair any damage caused.
How the exam asks about it
Two conditions carry most of the questions: the tenant must be using them for a trade or business, and leaving them past the end of the term can forfeit them to the landlord.
Related terms
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