Certified Residential Appraiser Practice Exam

What is another name for a trade fixture?

1. Chattel fixture

2. Commercial fixture

3. Personal property

4. Business inventory

The correct answer is: Chattel fixture

A trade fixture is commonly referred to as a chattel fixture. This term specifically denotes items that a tenant installs in a rented space for conducting business purposes and that can be removed upon termination of the lease. Chattel fixtures maintain their identification as personal property, even while being attached to real estate, because they are installed for the benefit of the tenant’s business operations. While commercial fixture, personal property, and business inventory are terms that may relate to the context of a trade fixture, they do not accurately capture the legal definition and implication of a trade fixture being chattel. A commercial fixture does not specifically imply the removable nature associated with trade fixtures, personal property encompasses a broader category that does not necessarily involve installation, and business inventory refers to goods available for sale rather than items affixed to the property for operational use. Thus, the term chattel fixture is the most precise alternative name for a trade fixture.