Question

Donovan leased store space to Hollis for a restaurant. Hollis installed his ovens, booths, counters and other equipment to operate the restaurant. When would these items become the property of the store owner?

1) Never, because these items are not permanently affixed to the property
2) When they were installed
3) Within a reasonable amount of time if Hollis does not remove them when the lease expires
4) None of the above

Answer 1

The items installed by Hollis for the restaurant will generally become the store owner's property within a reasonable time after the lease expires if they are not removed. This is based on standards of fixtures and trade fixtures in property law.

Step-by-step explanation:

The issue raised deals with the concept of fixtures in property law, which pertains to when personal property is considered to become part of real property. In general, if Hollis installed ovens, booths, counters, and other equipment to operate the restaurant, these items could become fixtures (and thus the property of the store owner) if they are permanently affixed to the property. However, based on the information provided, the correct answer is 3) Within a reasonable amount of time if Hollis does not remove them when the lease expires. If the equipment is not removed upon the expiration of the lease, and after a reasonable period, they may be considered abandoned and become the property of the store owner, unless specified otherwise in the lease agreement. This is often the case with trade fixtures that are essential to running a business like a restaurant and can vary by jurisdiction or specific lease terms.