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Kevin and Susan are under contract to sell their home in Brentwood, Tennessee. The purchase agreement specifies that the sale includes all 'fixtures.' There is a dispute at closing about whether a built-in bookcase that Kevin installed is included in the sale. The buyer argues it is a fixture; Kevin argues it is personal property he is taking with him. Under Tennessee law, which factor is MOST determinative in deciding whether the bookcase is a fixture?

Correct Answer

C) The intent of the party who installed the item, as evidenced by the method and permanence of attachment

Under Tennessee law, the determination of whether an item is a fixture (real property) or personal property involves three traditional tests: method of attachment, adaptation to the property, and intent of the installer. Tennessee courts consider intent — particularly as evidenced by how permanently the item was attached and whether its removal would damage the structure — to be the most determinative factor. A built-in bookcase that is bolted to walls and integrated into the room's design would likely be considered a fixture based on the objective evidence of intent.

Answer Options
A
The original purchase price Kevin paid for the bookcase when he bought it
B
Whether Kevin has a receipt showing the bookcase was purchased separately from the home
C
The intent of the party who installed the item, as evidenced by the method and permanence of attachment
D
Whether the bookcase is listed on the seller's property tax assessment as personal property

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Related Topics & Key Terms

Key Terms:

fixturespersonal_propertyintent_testpurchase_agreementcontract_dispute

Related Concepts

The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.

A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.

An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.

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