Trade Fixture Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Trade Fixture, written in plain English, along with examples of how it is used.

What is Trade Fixture?

it’s a personal property of the business tenant on the real property where the tenant is doing his business and who removes or dismantles those fixtures at the time of completion of the lease or tenancy. For Eg. A tenant has machinery fixed to the floor of the property which needs to be vacated as the term of tenancy is over. The tenant has the right to those machinery which is also known as trade fixtures which he would uproot and take away but will have to pay for the damages that may have caused due to rooting and uprooting of the machinery on the floor.

History and Meaning of Trade Fixture

Trade fixture is a legal term that refers to a piece of equipment, machinery, or other personal property that a business tenant attaches to a leased property for a trade or business purpose. The tenant has the right to remove or detach the fixture at the end of the lease or tenancy, but may be required to compensate the landlord for any damage incurred during installation or removal. The concept of trade fixtures dates back to English common law and has been widely adopted by American property law.

Examples of Trade Fixture

  1. A restaurant tenant installs a custom-built wood-fired oven in the kitchen of a leased space. At the end of the lease, the tenant removes the oven and returns the kitchen to its original condition.

  2. A retail tenant installs custom shelving and displays in a leased space to showcase products. At the end of the lease, the tenant removes the fixtures and restores the space to its original condition.

  3. A manufacturing tenant installs a specialized production line in a leased space that is designed to fit the unique dimensions of the space. At the end of the lease, the tenant removes the line and compensates the landlord for any damage caused during installation or removal.

Legal Terms Similar to Trade Fixture

  1. Chattel - Personal property that is movable, such as equipment, furniture, and vehicles.

  2. Fixtures - Personal property that is attached to real property and becomes part of it, such as light fixtures, built-in shelving, and wall-to-wall carpeting.

  3. Real Property - Land and any permanent structures attached to it, such as buildings, trees, and underground mineral rights.