Rights in real property - Fixtures

Learning Outcomes

This article explains fixtures in real property, including:

• Distinguishing fixtures from personal property (chattels) using the intention, annexation, and adaptation factors commonly tested on the MBE.
• Identifying how courts apply the MARIA framework to classify contested items and predict whether they pass with a conveyance of land or remain separate personal property.
• Comparing fixture disputes in common ownership situations with divided ownership scenarios involving landlords, tenants, buyers, sellers, mortgagors, mortgagees, licensees, life tenants, and trespassers.
• Evaluating landlord–tenant conflicts over trade fixtures, residential improvements, and abandonment, with particular attention to timing of removal and the doctrine of waste.
• Determining when buyers, sellers, and secured creditors obtain rights in attached items, and how express agreements can alter default fixture rules on the exam.
• Applying removal rules for tenants, life tenants, licensees, and good faith improvers, including obligations to repair damage and the consequences of untimely removal.
• Analyzing fact patterns involving constructive annexation, chattels incorporated into structures, and good faith improvers to identify who ultimately owns disputed items.
• Practicing exam-style reasoning to choose the best answer among close alternatives by focusing on objective intent, reasonable expectations, and clearly stated contractual provisions.

MBE Syllabus

For the MBE, you are required to understand fixtures as a component of rights in real property, with a focus on the following syllabus points:

• Definition of a fixture and distinction from personal property
• Tests for fixture status (intention, annexation, adaptation, and related factors)
• Chattels incorporated into structures and constructive annexation
• Common ownership cases (owner improves own land) and the intention test
• Divided ownership cases:
  • Landlord–tenant and trade fixture rules
  • Life tenant vs. remainderman
  • Buyer–seller and mortgagor–mortgagee disputes
• Rules governing removal, timing, and duty to repair damage
• Effect of express agreements on fixture classification and removal rights
• Rights of good faith improvers and trespassers in relation to fixtures

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

1. Which of the following is most likely to be classified as a fixture?
   1. A freestanding refrigerator in a rented apartment.
   2. Built-in kitchen cabinets installed by a homeowner.
   3. A tenant’s removable bookshelf.
   4. A garden hose left on the lawn.
2. Under the majority rule, which factor is most important in determining whether an item is a fixture?
   1. The cost of the item.
   2. The manner of annexation.
   3. The intention of the annexor.
   4. The color of the item.
3. If a tenant installs a ceiling fan in a leased apartment, when must the tenant remove it to avoid forfeiture to the landlord?
   1. Before the lease ends.
   2. At any time after the lease ends.
   3. Only with the landlord’s written consent.
   4. Never; it always becomes the landlord’s property.

Introduction

Fixtures are a frequent source of disputes in real property law and are tested regularly on the MBE. A fixture is an item of personal property that has become so attached to land or a building that it is legally regarded as part of the real property. Whether an item is a fixture affects ownership, transfer, and removal rights between sellers, buyers, landlords, tenants, lenders, and third parties. The classification of an item as a fixture or personal property can determine who owns it after a sale or lease and who bears responsibility for its removal or repair.

Key Term: Fixture
Personal property that has been attached to land or a building in such a way that it is considered part of the real property for legal purposes.

Key Term: Real Property
Land and anything legally regarded as part of the land, including buildings and fixtures.

Key Term: Chattel (Personal Property)
Movable property not attached to land or buildings, retaining its separate identity and ownership unless and until it becomes a fixture.

Classification: Fixture vs. Personal Property

The core issue is whether an item remains personal property (a chattel) or has become a fixture. This is determined by applying several legal tests, with the intention of the person who attached the item usually the most significant.

Key Term: Personal Property
Movable items, such as furniture or equipment, that are not integrated into land or buildings and are not treated as part of the real estate.

The classification matters because:

• Fixtures normally pass automatically with a conveyance of land (e.g., deed, mortgage).
• Personal property does not pass unless separately conveyed (e.g., bill of sale).
• Landlords and tenants have different rights depending on whether an item is a fixture or removable personal property.
• Creditors may or may not have security in an item depending on its classification.

On the MBE, the same physical item (e.g., a light fixture or oven) can be either a fixture or a chattel depending on context and facts.

Tests for Fixture Status

Courts use a combination of factors to decide if an item is a fixture. The factors are applied objectively—what a reasonable observer would infer from the circumstances, not what the annexor secretly thought.

Key Term: Annexation
The act of physically attaching personal property to real property, potentially changing its legal status to a fixture.

Key Term: Adaptation
The degree to which an item is specially designed or fitted for use with a particular property, supporting fixture status.

Commonly tested factors include:

• Intention of the Annexor (primary factor):
  The key question is whether the person who attached the item intended it to become a permanent part of the property. This intention is inferred from:
  • The nature of the article (how essential it is to normal use of the premises)
  • The manner of attachment
  • The amount of damage removal would cause
  • Any custom fitting to the property
  • The relationship of the parties (e.g., owner vs. tenant; courts more readily find “fixture” when the owner annexes)
• Manner of Attachment (Annexation):
  The more permanently an item is attached (nailed, bolted, cemented, built-in, or wired into the systems), the more likely it is a fixture. Items simply resting by their own weight (like a freestanding bookcase) are less likely to be fixtures.
• Adaptation to Real Estate:
  If the item is specially adapted or custom-fitted to the property (custom cabinetry, specially cut carpets, tailored blinds), it is more likely a fixture. If it is generic and easily moved to another property, classification as personal property is more likely.
• Agreement of the Parties:
  Any express agreement between parties (in a lease, sales contract, or mortgage) usually controls, so long as it is clear and not inconsistent with rights of third parties.

Many outlines summarize these considerations with the mnemonic “MARIA”: Method of attachment, Adaptability, Relationship of the parties, Intention, Agreement. On an exam, the “intention” factor is typically described as the most important, but it is judged by the physical facts, not by after-the-fact statements.

Key Term: Constructive Annexation
Treatment of an item as a fixture even though it is not physically attached, because it is uniquely adapted to the real estate and ordinarily kept with it (e.g., door keys, custom-sized curtain rods not yet installed).

Constructive annexation explains why house keys and specially cut curtain rods or storm-window inserts are treated as part of the realty even when not currently screwed into place.

Worked Example 1.1

A homeowner installs a custom-made bookcase that is bolted to the wall in the living room. When the homeowner sells the house, the buyer claims the bookcase is included in the sale. Is the bookcase a fixture?

Answer:
Yes. The bookcase is physically attached (bolted), specially adapted to the space, and a reasonable person would intend it to be a permanent improvement. It is a fixture and passes with the real property unless the sale contract states otherwise.

Chattels Incorporated into Structures

Some items are so integrated that they always become fixtures:

• Bricks in a wall
• Concrete poured into a structural base
• Plumbing and heating pipes embedded in walls or floors

Once incorporated so that they lose separate identity or removal would destroy them or the structure, they are clearly part of the realty.

Fixtures in Common Ownership vs. Divided Ownership

It is important to distinguish two recurring contexts.

Key Term: Common Ownership
A situation where the same person owns both the real property and the item attached to it at the time of annexation.

Key Term: Divided Ownership
A situation where the person who owns or attaches the item does not own the land (e.g., tenant, licensee) or where the landowner does not own the item (e.g., it is subject to a security interest).

Courts say they apply the same basic tests, but they tend to be more generous to annexors who do not own the land (especially commercial tenants).

Common Ownership

When the person who owns the land also owns the item—for example, a homeowner installing a furnace or built-in cabinets—the annexor’s objective intention to make a permanent improvement is usually decisive.

Courts consider:

• Nature of the article in relation to use of the realty (e.g., furnace vs. decorative statue)
• Degree and method of attachment
• Damage likely on removal
• Adaptation to the particular building or land

Items incorporated into the structure (such as bricks and plumbing) automatically become fixtures. Even when not physically attached, items uniquely adapted to the property (custom-cut carpeting, curtain rods cut for specific window brackets) may be fixtures through constructive annexation.

Common ownership disputes typically arise in:

• Vendor–purchaser cases: Owner attaches items, then sells the property without mentioning them.
• Mortgagor–mortgagee cases: Owner attaches items, then grants a mortgage (or vice versa), and the question becomes whether the item is included in the lender’s security.

In both contexts, courts ask what a reasonable purchaser or lender would expect to be part of the real estate.

Worked Example 1.2

A homeowner installs custom shutters that fit the exact dimensions of each window and are screwed into the frames. The homeowner later sells the house without mentioning the shutters in the contract, then removes them before closing. The buyer sues to recover the shutters or their value. Who prevails?

Answer:
The buyer. The shutters are substantially attached, custom-fitted, and reasonably viewed as a permanent part of the house. They are fixtures and pass with the realty in the absence of an express reservation in the sales contract.

Divided Ownership (Landlord–Tenant, Buyer–Seller, Trespasser, Creditor)

When the person attaching the item does not own the land (or when the landowner does not own the item), the law is more protective of the annexor’s or secured party’s interest, especially in commercial settings.

Key divided ownership contexts include:

• Landlord–tenant
• Life tenant–remainderman
• Licensee–landowner
• Trespasser–landowner
• Buyer–seller when the seller installed an item while in possession under a contract
• Mortgagor–mortgagee and other secured creditors

Landlord–Tenant

Tenants often install improvements to make the premises comfortable or suitable for business use. The law recognizes special categories:

Key Term: Trade Fixture
Personal property installed by a commercial tenant for business purposes (e.g., shelving, ovens, display cases). Trade fixtures remain the tenant’s property and are generally removable before the lease ends, subject to repairing damage.

General rules for tenants:

• There is a presumption that tenants may remove:
  • Trade fixtures used in their business
  • Other fixtures they installed for their own use or convenience
    if:
  • Removal occurs before the lease ends (or within a short, reasonable time in some jurisdictions), and
  • Removal does not cause substantial, permanent damage to the premises (beyond minor repairable harm).
• If the tenant fails to remove an item that is classified as a fixture by the time the tenancy ends, the fixture is usually deemed abandoned and becomes the landlord’s property by accession.
• The tenant must repair or pay for repair of any damage caused by removal.

Key Term: Waste
Unreasonable conduct by a present possessor (such as a tenant or life tenant) that permanently damages the property or reduces the value of the future interest, including destructive removal of fixtures.

Removing fixtures in a way that seriously harms the building can constitute waste.

Worked Example 1.3

A tenant installs a pizza oven in a leased restaurant space. At the end of the lease, the tenant wants to remove the oven. The landlord objects, claiming it is a fixture that must stay. Who prevails?

Answer:
The tenant. The oven is a classic trade fixture installed for business purposes. If the tenant removes it before the lease ends and can repair any minor damage (e.g., patching vent holes), the tenant may remove it. Trade fixtures are strongly presumed removable in the landlord–tenant context.

Life Tenants and the Doctrine of Waste

Key Term: Life Tenant
A person who holds a life estate—present possessory rights that endure for the duration of a specified life.

Holders of a life estate are limited by the doctrine of waste. They may make reasonable improvements, including adding fixtures, but:

• They may remove fixtures they installed if removal can be done without substantial damage and
• Removal occurs during the life estate or within a reasonable time after it ends.

If removal would significantly impair the property or the interests of remaindermen, it may be prohibited as waste.

Licensees

Key Term: Licensee
A person with permission (but no property interest) to enter or use land for a specific purpose, such as a billboard company or a crop harvester.

Licensees may remove items they annexed for their own use if:

• They remove them before the license terminates or within a short, reasonable time thereafter, and
• Removal does not cause substantial damage to the land.

Buyer–Seller and Mortgagor–Mortgagee

In divided ownership disputes involving buyers and sellers, or mortgagors and mortgagees, fixture classification controls who gets the item:

• In a sale of land, fixtures are presumed to pass to the buyer unless the contract expressly reserves them to the seller.
• In a foreclosure, fixtures are included in the collateral of the mortgagee; items that remain personal property generally are not.

Courts again apply the intention and annexation tests from the viewpoint of a reasonable purchaser or lender.

Worked Example 1.4

A homeowner installs a high-end, built-in sound system wired through the walls. Later, the homeowner sells the house. The sales contract is silent about the sound system. Before closing, the seller removes the speakers and wiring. The buyer sues. How should the court rule?

Answer:
For the buyer. The sound system is wired into the structure and adapted to the residence. A reasonable purchaser would expect it to be part of the house. It is a fixture, passes with the realty, and cannot be removed absent a clear contractual reservation.

Removal and Timing

Removal rules differ by type of interest:

• Fee simple owners are generally free to make and remove improvements, including fixtures, subject to governmental land use regulations and obligations to lenders and purchasers.
• Tenants must remove their removable fixtures (especially trade fixtures) before the lease expires. If they do not, the fixtures usually pass to the landlord. The tenant must repair any damage caused by removal.
• Life tenants and licensees must remove fixtures either before their interest ends or within a reasonable time thereafter; otherwise, they are treated as abandoned to the remainderman or landowner.
• Buyers of real property take fixtures as part of the conveyance unless the sales contract expressly excludes them.
• Mortgagees take fixtures as part of the mortgaged real estate; in foreclosure, fixtures go with the property to the purchaser at the foreclosure sale.

Key Term: Removal Right
The legal ability of an attaching party (such as a tenant) to detach a fixture and reclaim it as personal property, subject to timing limits and the duty to avoid substantial damage.

The key timing point on the MBE: a tenant’s removal must occur no later than the end of the tenancy (unless the question clearly indicates a jurisdiction allowing a short grace period). Once the tenant surrenders possession without removing a fixture, it is usually too late.

Agreements Control

Any clear agreement between parties (in a lease, sales contract, or separate instrument) will usually override default fixture rules.

• Parties can agree that a particular item, even if attached, will remain personal property of one party.
• They can also agree that certain items will be left behind or included in the sale.

Courts enforce these agreements when:

• The agreement is explicit and not ambiguous, and
• Enforcement does not unfairly prejudice third parties who lacked notice (such as an earlier mortgagee).

In landlord–tenant situations, leases commonly state who owns improvements or trade fixtures at the end of the lease. On the exam, always read lease or contract language carefully before applying default rules.

Good Faith Improvers and Trespassers

Key Term: Trespasser
A person who intentionally enters or occupies land without the owner’s permission or legal right.

Key Term: Good Faith Improver
Someone who, in reasonable but mistaken belief of ownership or authority, improves another’s land by adding structures or fixtures.

Historically, trespassers had no rights to improvements they installed: anything built or attached became part of the land and belonged to the landowner. Modern trends are more flexible for good faith improvers:

• Many jurisdictions allow a good faith improver either:
  • To remove the improvement if it can be done without serious harm, or
  • To recover the value added to the property (or the lesser of value added and cost of improvements).
• However, intentional trespassers acting in bad faith generally retain no rights to fixtures or improvements they add; those belong entirely to the landowner.

The MBE may not test state-specific statutes, but it may expect you to recognize the distinction between a good faith improver and a willful trespasser.

Worked Example 1.5

Believing she had inherited a parcel of land, Anna built a small greenhouse on it, attaching it to a concrete slab. Later, it is discovered that the land actually belongs to Ben. Anna acted in good faith. Ben demands that the greenhouse remain. What is the likely result under modern approaches?

Answer:
A court may permit Anna to remove the greenhouse if removal can be accomplished without substantial damage to Ben’s land (e.g., leaving only a removable slab or patchable surface). If removal would seriously harm the land, some jurisdictions allow Anna to claim compensation for the value her improvement adds, but intentional trespassers would not receive such protection.

Worked Example 1.6

A tenant in a residential apartment installs a ceiling fan wired into the ceiling box. The lease is silent on fixtures. At the end of the lease, the tenant moves out but forgets to remove the fan. A week later, the tenant asks to re-enter to retrieve it. The landlord refuses. Who owns the fan?

Answer:
The landlord. The fan is a fixture, and the tenant’s right to remove it ended when the lease expired and the tenant surrendered possession. Having failed to remove it timely, the tenant has forfeited any claim, and the fan is now part of the landlord’s realty.

Exam Warning

On the MBE, do not assume that all attached items are fixtures. Focus on objective intention, method of attachment, and adaptation. Watch for express agreements that override default rules. In landlord–tenant questions, pay close attention to whether the item is a trade fixture and whether removal was attempted before the tenancy ended.

Revision Tip

In any fixture dispute, quickly identify:

• Who attached the item and what interest they had (owner, tenant, life tenant, licensee, trespasser)
• Whether the item is functionally part of the structure or specially adapted
• Whether there is an express agreement
• Whether removal is timely and whether it causes substantial damage

This sequence aligns with how MBE questions are typically structured.

Summary

Fixtures are items of personal property that become part of real property when attached with the intent to make them permanent. The main test is the annexor’s objective intention, but courts also consider the manner of attachment, adaptation, relationship of the parties, and any agreement. Tenants, life tenants, and licensees have special rights to remove certain fixtures if done timely and without substantial damage. Express agreements usually control. Buyers and mortgagees take fixtures as part of the realty unless excluded by contract or by superior rights of a secured party. Good faith improvers may have limited rights; intentional trespassers generally do not.

Key Point Checklist

This article has covered the following key knowledge points:

• A fixture is personal property attached to land or buildings with intent to make it part of the real property.
• The main test for fixture status is the annexor’s objective intention, judged by a reasonable person.
• Courts consider the manner of attachment, adaptation, nature of the item, relationship of the parties, and any express agreement.
• Chattels incorporated into structures (bricks, pipes, wiring) almost always become fixtures.
• Constructive annexation can make non-attached but uniquely adapted items (keys, custom curtain rods) fixtures.
• In common ownership cases, the owner’s objective intention is decisive; purchasers and mortgagees generally receive fixtures with the land.
• In landlord–tenant cases, tenants may remove trade fixtures and other fixtures they install if removal is before lease end and does not cause substantial damage.
• Life tenants and licensees may remove fixtures they installed if done before or within a reasonable time after their interest ends.
• Failure to remove a tenant-installed fixture by the end of the lease usually results in forfeiture to the landlord.
• Buyers of real property take fixtures unless the contract clearly states otherwise; mortgagees take fixtures as part of the security.
• Good faith improvers may have limited rights to remove improvements or recover value; intentional trespassers generally forfeit improvements to the landowner.
• Removal of fixtures must avoid substantial damage to the property, or it may constitute waste.
• Express agreements regarding ownership or removal of fixtures typically override default rules, subject to rights of third parties.

Key Terms and Concepts

• Fixture
• Real Property
• Chattel (Personal Property)
• Personal Property
• Annexation
• Adaptation
• Constructive Annexation
• Common Ownership
• Divided Ownership
• Trade Fixture
• Waste
• Life Tenant
• Licensee
• Trespasser
• Good Faith Improver
• Removal Right