Which of the following is an example of a trade fixture?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

A trade fixture refers to an item of personal property that a business owner installs in a commercial space to facilitate their trade or business operations and is typically removable by the business owner when they vacate the premises. Retail display cases are a prime example of trade fixtures, as they are specifically installed for the purpose of showcasing products for sale. The business owner can take these display cases with them when they leave, as they are not considered a permanent part of the property.

In contrast, the other options listed are generally considered part of the real property. Nice light fixtures in a home are usually classified as fixtures that are meant to remain with the property. Built-in kitchen cabinets are also permanent fixtures that are integral to the structure of the home, and permanent electrical wiring is a fundamental component of the building’s infrastructure that belongs to the property rather than to any individual tenant or business owner.

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