What is the main characteristic of a trade fixture?

A trade fixture is primarily defined as personal property that is utilized in a business context. This means that when a business owner installs equipment or items necessary for their operations, these items remain the property of the business owner, even if they are affixed to the real estate. The key distinction is that unlike other fixtures, which may become part of the real estate when they are installed, trade fixtures are expressly intended to be removed by the tenant or business owner when they vacate the premises.

Trade fixtures play a crucial role in commercial settings as they allow businesses to adapt spaces for their specific needs without relinquishing ownership of the specialized equipment that enables their operations. This characteristic underscores the temporary nature of these installations in relation to the longer-term ownership and usage of the property itself.

In contrast, being permanently attached to the real estate aligns more with traditional fixtures, which are intended to remain with the property as part of its overall value. The aesthetic purpose of a fixture does not encompass the commercial context and the categorization of a trade fixture as real estate from the start does not apply, as they are distinguished by their personal property status until the business chooses to remove them.