A fixture is a part of a house, apartment, commercial building, or land (real estate) that is permanent—it is sometimes said to be affixed to the land. Because a fixture is permanent it is real property (as opposed to personal property) and is conveyed or transferred with the sale of the real estate. Ceiling fans, wall sconces, light fixtures, and built-in shelves are examples of fixtures.

The question of whether some element of a house is a fixture may become an issue when the house is sold and the buyer and seller disagree about what was to be included in the sale. The question of whether some element of an apartment or rental house is a fixture may become an issue when a tenant makes an improvement to the house or apartment and, upon termination of the lease, the landlord and tenant disagree about whether the tenant can remove the improvement.

Laws vary from state to state and the question of whether an improvement to the property is a fixture that must remain with the property or is tangible personal property that may be removed is determined by a state’s laws that define fixtures. These laws may be located in a state’s statutes and in a state’s court opinions (case law).

The parties to an agreement for the sale of residential or commercial real estate typically address the issue of fixtures and try to eliminate any disputes by defining what will be included in the sale (fixtures and fittings attached to the property) and itemizing any appliances or personal property that are not fixtures but that will be included in the sale.

Residential and commercial lease agreements typically require a tenant to get the written permission of the landlord before making any improvements or changes to the leased premises—which provides the parties with an opportunity to make a written agreement about whether the improvement will remain with the property upon expiration of the lease.

In North Carolina, the concept of a fixture is important in real estate transactions and lease agreements. A fixture is considered a permanent part of the property and is legally classified as real property, which means it is included in the sale or transfer of real estate. Examples of fixtures include ceiling fans, light fixtures, and built-in shelves. The determination of whether an item is a fixture can lead to disputes between buyers and sellers during a sale, or between landlords and tenants at the end of a lease. North Carolina law, including state statutes and case law, provides guidance on what constitutes a fixture. To avoid disputes, parties in real estate sales often specify in their contracts what is to be included as fixtures. Similarly, lease agreements usually require tenants to obtain written permission from landlords before making any improvements, allowing for an agreement on whether such improvements will remain with the property after the lease ends. An attorney can provide specific advice and assistance in interpreting and applying these laws to individual situations.