Florida Real Estate Sales Associate Examination Content OutlineReal Estate Property and OwnershipEasy
A tenant is renting a commercial space for their bakery business. They install a large, custom-built oven, industrial mixers, and specialized lighting fixtures. At the end of the lease term, the tenant plans to remove these items and relocate their business. Assuming no specific agreement otherwise, how are these items generally classified?
- AThey are emblements and belong to the landowner.
- BThey are trade fixtures and can be removed by the tenant.
- CThey are appurtenances and convey with the real estate.
- DThey are fixtures and must remain with the property.
Show answer & explanationAnswer & explanation
Correct answer: B. They are trade fixtures and can be removed by the tenant.
Trade fixtures are items installed by a tenant for the purpose of conducting a business. Unlike regular fixtures, trade fixtures are considered personal property and can generally be removed by the tenant at the end of the lease, provided no damage is done to the premises.
Why the other options are wrong
- A. Emblements are growing crops, not commercial equipment.
- C. Appurtenances are rights or improvements that run with the land, not tenant-installed business equipment.
- D. Fixtures typically become part of the real estate; trade fixtures are an exception.
Trade Fixtures
Items of personal property installed by a tenant in a leased commercial space for the purpose of conducting their business.
- Considered personal property.
- Removable by the tenant by lease end.
- Tenant must repair any damage caused by removal.
Memory trick: Business needs get to leave!