In the context of real estate, what does the term 'fixture' refer to?

In real estate, the term 'fixture' specifically refers to a permanent addition to real property that becomes part of the property itself. This is important to understand because fixtures are items that were once personal property but have been affixed or attached to the land or the buildings on it in such a way that they cannot be easily removed without causing damage. Common examples include lighting fixtures, heating systems, and built-in cabinetry.

When a fixture is installed, it is intended to remain with the property during a sale or transfer of ownership, which impacts both the value of the property and the decision-making process for buyers and sellers alike. This permanence distinguishes fixtures from other items that may be categorized differently, such as temporary structures or unattached personal property. Recognizing what constitutes a fixture is crucial for real estate professionals and anyone involved in property transactions, as it affects how properties are advertised, evaluated, and transferred.