Final answer:
The legal tests of intent of the parties, method of attachment, adaptation, and agreement determine whether an item is considered a fixture or personal property. These tests examine how an item is attached to property, its necessity for use of the property, and any contractual agreements.
Step-by-step explanation:
The intent of the parties, method of attachment, adaptation, and agreement are all legal tests for determining whether an item is considered a fixture or personal property in the context of real estate transactions and property law.
A fixture is an item that was once personal property but has been attached to land or building in such a way that it is considered legally a part of the real property.
For instance, if a business owner installs specialized machinery bolted to the floor of a leased building for manufacturing purposes, this machinery could be deemed a fixture due to its adaptation for use with the property and the possible intent of the parties (both the owner and the lessor) for it to remain with the property upon sale or lease termination.
The method of attachment (how permanently the item is attached to the property) and any agreement (like clauses in a lease or contract) are also critical.
Attachment refers to whether the item is fixed to the property and how difficult it is to remove. The item's adaptation pertains to how necessary the item is for the use of the property.
Lastly, agreements can include any contracts or lease agreements that might specify whether an item is to remain as part of the property.