National Real Estate Practice Exam

Which term best describes personal property attached to a rental property?

1. Trade fixtures

2. Real property

3. Easements

4. Alluvium

The correct answer is: Trade fixtures

The term that best describes personal property attached to a rental property is "trade fixtures." Trade fixtures are items of personal property that a tenant installs in a leased space for the purpose of conducting business. These fixtures remain the personal property of the tenant and can be removed by the tenant when the lease ends, as long as their removal does not cause damage to the property. This distinction is crucial in real estate, as it clarifies the relationship between landlords and tenants regarding what can be considered part of the rental property versus what a tenant may take with them upon vacating. Proper understanding of trade fixtures is important for both property management and the legal rights of tenants. In contrast to trade fixtures, real property refers to land and anything permanently affixed to it, such as buildings and structures. Easements are legal rights to use someone else's land for a specific purpose, while alluvium refers to the soil or silt deposited by flowing water, which has no direct relation to personal property in a rental context. Therefore, trade fixtures is indeed the most appropriate term in this scenario.