California Real Estate Practice Exam

In real estate terms, what does the term "fixture" refer to?

1. A movable piece of property

2. A permanent property improvement

3. A temporary addition to a property

4. An encumbrance on the property

The correct answer is: A movable piece of property

The term "fixture" in real estate specifically refers to a permanent property improvement that has become a part of the real estate. Fixtures are items that were once personal property but have been affixed to the land or a building in such a way that they are considered part of the real estate itself. This could include things like built-in appliances, lighting fixtures, and cabinetry. The key aspect of a fixture is its permanence and its attachment to the property, distinguishing it from movable items. Movable pieces of property are classified as personal property, which are not considered fixtures because they can be easily removed from the property without causing damage. Temporary additions to a property would again not qualify as fixtures, since they imply a lack of permanence. Encumbrances refer to claims or liens against the property, which are entirely different from the concept of fixtures. Understanding these definitions is crucial in real estate transactions, especially during sales negotiations or appraisals where fixtures and personal property distinctions can impact value and ownership rights.