Question

When tenant Mike opened a sandwich shop in the mall, he installed counters and special freezers. When he closes the shop, can he remove those counters and freezers?

A. No, fixtures become part of the real estate.
B. No, because tenants give up the right of possession.
C. Yes, if he repairs any damage caused by their removal.
D. Depends on his lease agreement.

Answer 1

The tenant's ability to remove counters and freezers when closing the shop depends on the lease agreement.

Step-by-step explanation:

The correct answer is D. Depends on his lease agreement.

When a tenant installs fixtures like counters and freezers in a rental space, whether or not they can be removed when the tenant closes the shop depends on the lease agreement between the tenant and the landlord. The lease agreement should specify whether the fixtures are considered part of the real estate or if they can be removed by the tenant upon closing the shop.

For example, if the lease agreement states that the fixtures become part of the real estate, then the tenant cannot remove them. On the other hand, if the lease agreement allows the tenant to remove the fixtures, they may do so, but they would usually be required to repair any damage caused by the removal.