Certified Residential Appraiser Practice Exam

What is the essence of a 'fixture' in property context?

1. A temporary structure on a property

2. A permanent addition that is part of a property

3. A movable item that can be removed at any time

4. A property that is currently under lease

The correct answer is: A permanent addition that is part of a property

In the context of property, a fixture is defined as a permanent addition that is part of a property. Fixtures differ from other types of property in that they are items that were once personal property but have been permanently attached to the real estate. This attachment can be either physical or functional, meaning that the item has become so integrated into the property that it is considered part of the real estate itself. For example, built-in cabinets, plumbing, and light fixtures are considered fixtures because they are installed in such a way that removing them would cause damage to the property or alter its value significantly. The permanence of a fixture is what distinguishes it from transient items, which can be categorized as personal property and can be easily removed without damage or loss to the property itself. In reviewing the other options: temporary structures might be considered accessories but do not meet the criteria of being a fixture due to their non-permanent nature. Movable items that can be removed at any time are clearly personal property and do not qualify as fixtures, as they are not permanently attached. Lastly, a property that is currently under lease pertains to real estate status rather than the attachment of items within that property, which more accurately depicts fixture characteristics. Thus, identifying a fixture as a permanent