Fixtures and Trade Fixtures


Generally Speaking, a Commercial lease often refers to tenant’s fixtures and trade fixtures. The general theory at common law was that any fixtures belonged to the person who owned the real estate. It means, a landlord would own the building and the landlord would also own any fixtures which became part of the building.

In addition, Most Commercial Landlords and Tenants have at the least a signed Offer to Lease, if not a complete Lease Agreement. The question is what is a simple definition of the fixture? it is an object that attaches to the building. The common law developed to permit a tenant to remove such fixtures from the real estate as were necessary for it to conduct its business.

Examples of Fixtures and Trade Fixtures:

A useful example to explain trade fixtures involves sinks in a barbershop. The sink is a portion of the premises that would be trade fixtures.  In addition, the tenant will remove the sink at the end of the lease term. on the other hand, there is the same sink in the bathroom, it could be retained by the landlord. The tenant should be aware of the costs of the removal of items.

Chattels are different, A chattel is a moveable item, the tenant can remove it at the end of the lease term. For example, Curtains or Blinds, Printers, etc.

Our specialty is in commercial agreements, Please reply if you would like to buy a business or property. Our team is working with a high range of sellers and building owners. We are here to help our clients to be happy with their sales.



Call Babak Mehrabi Commercial agent with Century21 Heritage Group Ltd.


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