Fixtures in real estate

The fixture is personal property that is affixed to a certain building in order to convert into real property legally. Fixtures are items of personal property that have been modified to become integral components of the real estate because they are affixed to the real estate. Hot water heaters, stoves, shelving, plumbing fixtures, and cupboards are a few examples of fixtures. When they were purchased, these objects were purchased as personal property, but once they were affixed to the building, they were added to the real estate. These goods might nevertheless maintain their prior status as personal property even if they were attached to the travel trailers (Grayson, 2004).



Legally fixtures are items that are permanently attached to the real property. These items are taken to be part of the property such as real estate in case of security interest. Those properties that are not attached to the real property do not qualify to be called fixtures but rather chattel property. Hot water heaters, stoves, shelves, plumbing fixtures and cabinets are fixtures because they are attached to the real estate.



Part I



Examples of Fixture and Personal Property



Fixtures



These are some of the examples of fixtures: Swimming pools, fences, landscaping, fireplace screens, door knobs pulls, switch plates, shower heads, bathroom mirrors, awnings, shutters, ceiling fans, wall to wall carpets, attached flooring, garbage disposal, dishwashers, microwaves, stoves, built-in shelving units, garage doors openers, cooling units and heat and light fixtures.



Personal Property



These are some of the example of personal property: BBQ grill unless they are permanently built, potted plants, Flat screen TV, window treatments that aren't permanently fixed, dryers and washers, refrigerators, area rugs and furniture.



Part II



Difference between Personal Property and Fixtures



Fixtures are those items that are permanently attached to real estate, and that implies that it is part of real estate. That implies that once the real estate is sold, the title of the land will also include the fixtures. This might seem straightforward that all items that are attached to real estate are fixtures. However, so many consideration ought to be taken when differentiating between personal property and fixtures. On the other hand personal property are properties that are not attached to the real estate, that implies that when a real estate is sold the ownership of personal property does not move from the seller to the buyer (Gissel, 2016).



To make a determination on whether something is a fixture or personal property, it is dependent on the intention of the fixer as well as the purpose for annexation. If the property can transfer without causing any form of damage on the real estate, then it is considered to be personal property. Now if the transfer the property can cause damage to the real estate when transferred it is referred to as a fixture. When one is making a distinction between fixture and personal property the surrounding matters.



Issues That Arises Between a Landlord and the Renter



The buyer and the seller of the real estate often face difficulties when trying to distinguish between personal and fixture. In many cases, sellers will demand the buyers pay extra money for fixtures not knowing that they are part and parcel of the real property. In other cases, the landlord might demand that the tenant does some repairs on the real estate fixtures a fact that is wrong putting in mind that fixtures are part of the commodity (Grayson, 2004).



References



Gissel, J. (2016). A case of fixed asset accounting: Initial and subsequent measurement. Journal Of Accounting Education, 37, 61-66. http://dx.doi.org/10.1016/j.jaccedu.2016.10.001



Grayson, M. (2004). Real estate accounting. Critical Perspectives On Accounting, 15(8), 1036. http://dx.doi.org/10.1016/s1045-2354(03)00061-3

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