Fixtures: Overview, definition, and example
What are fixtures?
Fixtures are items that were once movable but have been permanently attached to land or a building, becoming part of the property. These can include built-in cabinets, lighting, plumbing systems, or industrial equipment. Whether an item is considered a fixture depends on factors like how it’s attached, its purpose, and whether removal would cause damage.
For example, a built-in air conditioning unit in an office building is typically considered a fixture, whereas a portable space heater is not.
Why are fixtures important?
Fixtures are important because they affect property ownership, leases, and real estate transactions. When a property is sold or leased, fixtures are generally included unless specifically excluded in the contract. Misunderstanding whether an item is a fixture can lead to disputes between buyers, sellers, landlords, and tenants.
For businesses, fixtures impact property value, lease agreements, and financial decisions. In commercial leases, tenants may install fixtures like shelving or kitchen equipment, but whether they can remove them at the end of the lease depends on the lease terms and legal classification of the fixtures.
Understanding fixtures through an example
Imagine a restaurant leases a space and installs commercial kitchen appliances, including ovens and ventilation systems. If the lease agreement states that all installed fixtures become part of the property, the tenant cannot remove them when they leave. However, if the agreement allows tenants to take their trade fixtures (business-specific equipment), they may remove the appliances upon lease termination.
In another example, a homeowner sells their house, and the buyer expects the built-in bookshelves and ceiling fans to remain. If the seller removes them before closing, a dispute could arise over whether they were considered fixtures that should have stayed with the property.
An example of a fixtures clause
Here’s how a fixtures clause might appear in a contract:
“All fixtures, including but not limited to built-in lighting, plumbing installations, and attached cabinetry, shall remain with the Property upon transfer of ownership unless expressly excluded in this Agreement.”
Conclusion
Fixtures are items that have become part of a property due to their attachment and intended permanence. Understanding whether something is a fixture is essential in real estate transactions, lease agreements, and business operations. Properly defining fixtures in contracts helps avoid disputes and ensures clarity in property-related dealings.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.