Legal FAQs for REALTORS® — Contracts and Forms
Fixtures and Improvements

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Legal disclaimer

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)]


Legal Disclaimer: The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on TexasRealEstate.com. Any legal or other information found here, on TexasRealEstate.com, or at other sites to which we link, should be verified before it is relied upon.

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