A commercial tenant installed bolted salon stations and wash basins for use in a leased beauty studio. Before the lease expired, the tenant wanted to remove them and repair any damage. How are those items most likely treated?
Correct Answer
C) As trade fixtures that the tenant may usually remove before the lease ends
Items installed by a commercial tenant for the purpose of carrying on a business are usually trade fixtures. A tenant can generally remove them before the lease ends, provided the tenant does so timely and repairs any material damage caused by removal.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
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