Some new people to the world of the property market may be confused with the constant usage of this term: exactly what is “high quality, furnished fixtures” that keeps appearing in the pitches for properties? Do they have anything to do with furniture?
Well, sort of but not really. The important part of the word “Fixtures” is “Fix” – Fixtures are considered part of the property they are on, and removing it would lower the property value which has legal ramifications. Examples like trees, garages, built-in sinks and ovens in kitchen… etc. These are provided as “value added” features to the property and usable in its own domain, but tenants cannot actually take them and move them to a different property (even if it was technically possible like uprooting a tree just to move it!)
In contrast, their opposite are “chattel”, or in laymen terms personal property. These are the things that are brought in by the tenant and can be taken with them when they leave the place. For example, Furniture, art pieces and so on.
Now, the tricky part to note is that sometimes “chattel” property can become fixtures due to circumstances! For example, if someone were to rent a property to turn it into a restaurant, and then installed new specialized kitchen equipment for that purpose, if he ever sells that restaurant to someone else, the kitchen equipment may be legally considered to be Fixtures even though they were originally a “personal” item that was brought in for a special purpose not in the original intention of the property!
Therefore, to avoid any nasty surprises, try to define what is a Fixture and what is not in any new properties that you buy. Also keep in mind any law that might cause the above event to happen.
We hope you enjoyed reading on what this property term means in order to make better decisions. Looking to acquire some properties on the market? No problem, New Launch has the information that you need! Simply browse our website in order to learn more.
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