A trade fixture, also known as a “mercantile fixture,” is a piece of property that has a connection to the business. It may be either connected to the land, or removable. Trade fixtures in real estate are pieces of property that are attached to a business like shelving, cases, and other equipment used for the business.
Types of Trade Fixtures
Common trade fixtures can include refrigerators, ovens, desks, and shelves. Some fixtures are attached more permanently to the structure such as a wall-mounted shelving system or countertops with built-in sinks. Other fixtures, such as vending machines, may be placed on the premises with the landlord’s consent, but remain the personal property of the tenant.
Rights to Trade Fixtures
The landlord is typically responsible for maintaining appliances, fixtures, and plumbing that are permanently connected to the building. However, as far as trade fixtures are concerned, the tenant typically retains the right to remove fixtures that were installed during the term of the lease agreement. The tenant may be responsible for any costs associated with the installation and removal of these fixtures, so it is important that they check the terms of the rental agreement before removing any trade fixtures.
Examples of Trade Fixtures
Some examples of trade fixtures are restaurant equipment, store display cases, office furniture, and point of sale systems. As long as these items remain within the premises and are being used by the tenant for their business, they are considered trade fixtures. Even if the tenants vacate the premises or the lease agreement terminates, the landlord is under no obligation to remove or store these fixtures.
Conclusion
Trade fixtures are pieces of property used by the tenant for the purpose of conducting business. These fixtures can be attached or removable, depending on the type. Landlords are typically responsible for maintaining fixtures that are permanently attached to the building, while tenants usually keep the right to remove fixtures they have installed during the term of the lease agreement. Common trade fixtures examples include restaurant equipment, store display cases, office furniture, and point of sale systems.