Future Business Leaders of America (FBLA) Business Law Practice Exam

What are fixtures in legal terms?

1. Personal property rented by tenants

2. Items of personal property attached to real property

3. Items stored in a warehouse

4. Tools used for construction purposes

The correct answer is: Items of personal property attached to real property

Fixtures in legal terms refer to items of personal property that have been attached to real property in such a way that they become a part of it. This means that when a fixture is installed and becomes integrated into the property, it typically owns a real estate status, meaning it is treated as part of the land or building rather than as separate personal property. For example, a chandelier that is permanently installed in a home or cabinetry that is fixed to the walls are both considered fixtures, as they are so closely associated with the property that their removal would cause damage or would be impractical. This legal distinction is important during transactions like sales, leases, or mortgages since it affects what is included in the transfer of ownership. The other options reference concepts that do not capture the legal definition of fixtures. Personal property rented by tenants does not imply any attachment or integration into the property itself. Items stored in a warehouse are also separate personal property that does not become part of real property. Tools used for construction, while they may be essential for building or improving property, remain personal property and do not attain fixture status unless they are permanently affixed to the property in the course of a construction process.