Leasing License Practice Exam

Trade fixtures are defined as:

1. Items permanently attached to a property

2. Personal property unique to a business

3. Common area property

4. Items used in landscaping

The correct answer is: Personal property unique to a business

Trade fixtures are items that are installed by a tenant to support their business operations and are considered personal property unique to that business. These items can include equipment, furniture, and other improvements that are necessary for the business's functions. When the lease expires, tenants are typically allowed to remove their trade fixtures, provided that they do so without causing damage to the property. This distinguishes trade fixtures from items that are permanently attached to real estate, which would generally be considered part of the property itself. Other options do not accurately describe trade fixtures. Items permanently attached to a property would fall under the category of real property, not personal property. Common area property refers to shared spaces within a commercial property that are not uniquely tied to any one tenant's business operations. Finally, items used in landscaping pertain to the external maintenance of a property rather than specific to a tenant's trade activities. Therefore, defining trade fixtures as personal property unique to a business captures their essence and function within commercial leasing arrangements.