Legal FAQs for REALTORS®
— Contracts and Forms
Fixtures and Improvements
How do you determine if an item is "permanently installed and built-in" with regard to Paragraph 2 of the One to Four Family Residential Contract? (updated June 24, 2013)
Whether an item of personal property has been so permanently attached as to constitute realty is a question of fact. Juries consider three factors when determining whether personal property has become real property:
1. Will the property damaged by removal? If so, to what extent? (This question determines the mode and sufficiency of attachment.)
2. Is the item customized for the property, or is it standard? (This determines the adaption of the item to the use of purpose of the realty.)
3. Was the installation intended to be permanent or temporary? (This question addresses the intention of the party who attached the item to the realty.)
The party's intention is the predominant factor, while the first two factors constitute evidence of that intention. Testimony of intention will not prevail, however, in the face of undisputed evidence to the contrary. [Logan vs. Mullis, 686 S.W.2d 605, 607 (Tex. 1985)]
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