Total Circumstances Test I.R.M.A. all four parts of the test must be applied, but

Fixtures Flashcards Total Circumstances TestI.R.M.A. all four parts of the test must be applied, but intention is the major part of the test.Legal tests of a fixtureWhen doing a legal test of a fixture, we would use the Total Circumstances Test.UpfitsArticles installed by the landlord while preparing the property for the tenant's occupancy.How does a fixture transfer with the property? If an item is a fixture, it automatically transfers with the property unless excluded by either party to the contract.North Carolina Uniform Commercial Code (UCC) Gives the creditor a security agreement that item remains personal property and may be removed by the creditor in the event of a default. When the time is paid for in full, it becomes real property.Agricultural fixturesAgricultural fixtures are considered real property rather than personal property. If a tenant instals agricultural fixtures such as a feeding trough, it becomes the landlords real property.Relationship of the annexorIs the person making the attachment an owner or a tenant?It is presumed that an owner intends a permanent attachment (the item becomes a fixture), while a tenant intends a temporary attachment( the item remains personal property) Trade FixturesAn article owned by a tenant and attached to a rented space or building for use in conducting a business is a trade fixture or chattel fixture.FixturesAn item that was once personal property but has been so affixed to land or a building that the law construes it to be part of the real estate.Method of AnnexationHow permanently was the item attached? Can it be removed without causing damage?Adaptation to real estateHas either the item or the property been tailored to facilitate working together? Has it been customized or built into the property?AccessionWhen trade fixtures are not removed at the end of the lease and become real property of the landlord.Intention of the AnnexorDid the person who installed the item intend it to remain permanently or to be removable? The most major part of the IRMA test.The three ways trade fixtures differ from other types of fixtures 1- Trade fixtures are usually owned and installed by a tenant for personal use and remain the tenants personal property.2- Trade fixtures are removable. The law gives a tenant the right to remove trade fixture, provided the

removal is completed before the term of the lease expires and the rented space is restored to its original condition.3- trade fixtures are not included in the sale of real property, because they are considered to be personal property.