National Real Estate Exam (PSI)Property OwnershipEasy
A homeowner, while cleaning out their garage, permanently attaches a new, custom-built workbench to the concrete floor using anchor bolts. The workbench was specifically designed for the space and is difficult to remove without causing damage. Later, the homeowner sells the property. What is the most likely classification of this workbench?
- AA fixture, as it has been permanently attached and customized for the property.
- BChattel, as it is a movable item not essential to the property's function.
- CA trade fixture, as it was used for a specific purpose by the homeowner.
- DPersonal property, as it was originally purchased as an item of furniture.
Show answer & explanationAnswer & explanation
Correct answer: A. A fixture, as it has been permanently attached and customized for the property.
The workbench, though initially personal property, became a fixture due to its permanent attachment to the real estate with anchor bolts and its customization for the space, making it difficult to remove without damage. When real property is sold, fixtures are generally included unless explicitly excluded in the sales contract.
Why the other options are wrong
- B. Chattel is another term for personal property; the permanent attachment changes its classification.
- C. Trade fixtures are specific to business tenants and are typically removable; this scenario involves a homeowner, not a business tenant.
- D. Although it started as personal property, its permanent attachment and customization converted it to a fixture.
Fixture
An item of personal property that has been permanently attached to real estate and is thus considered part of the real estate.
- Becomes real property once attached.
- Typically transfers with the real estate upon sale.
- Determined by the 'MARIA' tests.
Memory trick: Real property is rooted, personal property is portable.