PSI New Jersey Real Estate State Practice Exam

When an owner sells a home, a custom-built freestanding cabinet that fits an alcove of the living room will be BEST described as:

1. Real property

2. Personal property

3. Fixture

4. Chattel

The correct answer is: Fixture

The custom-built freestanding cabinet that fits an alcove of the living room is best described as a fixture. A fixture refers to an item that was originally personal property but has been attached to the real estate in such a way that it is considered part of the property. In this case, since the cabinet is specifically designed to fit within a defined space in the home, it indicates that the owner intended for it to be a permanent installment in the living area. In real estate, the distinction between fixtures and personal property is essential. While personal property includes movable items that can be taken away from the premises (like furniture), fixtures, like the cabinet, are treated as part of the real estate because of their attachment and the intent behind their placement. This means that when the home is sold, the cabinet will remain with the property, contributing to its value. Understanding the concept of fixtures is important for both buyers and sellers, as it affects what is included in the sale of a property. The other terms like real property, which refers to the land and anything permanently attached to it, and chattel, which is synonymous with personal property and refers to movable items, do not accurately capture the relationship of the custom-built cabinet to the property in question.