Ace Your Real Estate Dreams: REEDC New York Salesperson Practice Test 2026!

In a commercial environment, fixtures such as cabinets or refrigerator units are classified as trade fixtures. This classification is significant because trade fixtures are items that a business owner installs to facilitate their operations and are considered personal property rather than real property.

Trade fixtures remain the property of the tenant or business owner, even if they are attached to the building or commercial space. This distinction is crucial because, upon lease termination, tenants have the right to remove their trade fixtures as long as they do so without causing permanent damage to the property. This allows businesses to maintain their equipment and tools that are essential for their operations.

The other options represent different types of fixtures or structures. Permanent fixtures, for example, are items that are intended to remain with the property and are often considered part of the real estate. Accessory structures generally refer to buildings or installations that are secondary to the main structure and are not classified in the same way as trade fixtures. Improvements typically refer to enhancements made to a property that increase its value, but trade fixtures are specifically related to business operations and personal property rights.