Trade fixtures are best described as

Trade fixtures are best described as

• A. Real property installed by landlord
• B. Personal property installed by a tenant for business
• C. Fixtures that cannot be removed at lease end
• D. Items that permanently become part of the building

Answer: (B)

Trade fixtures are personal property installed by a tenant to conduct a business in leased space. Because the items are brought in specifically for operating the tenant’s business, they remain the tenant’s property and can be removed when the lease ends (as long as removal doesn’t damage the property and any required restoration is completed). This distinguishes them from fixtures that are permanently attached to and become part of the building, typically installed by the landlord. An example would be display shelves or equipment installed by a tenant for a shop—that equipment is trade fixtures because it serves the tenant’s business and is removable.

Trade fixtures are personal property installed by a tenant to conduct a business in leased space. Because the items are brought in specifically for operating the tenant’s business, they remain the tenant’s property and can be removed when the lease ends (as long as removal doesn’t damage the property and any required restoration is completed). This distinguishes them from fixtures that are permanently attached to and become part of the building, typically installed by the landlord. An example would be display shelves or equipment installed by a tenant for a shop—that equipment is trade fixtures because it serves the tenant’s business and is removable.