Question

A commercial tenant installed some ice cream coolers to sell ice cream. Which of the following statements best describes what happens to the coolers upon the expiration of the lease?

O The tenant would be able to take the coolers only if the tenant paid the owner the fair market value of the cases.
O The tenant would be able to take the coolers prior to the expiration of the lease since they were trade fixtures that were installed by the tenant.
O The landlord would be able to keep the coolers because once the coolers were installed they become real property.
O The owner would be able to keep the coolers as they would be considered emblements.

Answer 1

The tenant has the right to remove the ice cream coolers if they are considered trade fixtures, which are installed for the purpose of the tenant's business and can typically be removed at the end of a lease without compensating the landlord.

Step-by-step explanation:

Upon the expiration of the lease, the tenant would be able to take the ice cream coolers if they are considered trade fixtures. Trade fixtures are items installed by the tenant for the purpose of conducting business and are typically allowed to be removed at the end of a lease, provided that any damage to the property is repaired by the tenant upon their removal. The tenant's right to remove trade fixtures should be exercised before the lease expires or during a period as agreed upon within the lease.

It's important to note that permanently affixed items typically become part of the real property, and removing them would require compensation to the landlord or might be prohibited altogether. However, ice cream coolers, which are generally not permanently affixed and are essential to the tenant's business operations, qualify as trade fixtures and can be legally removed by the tenant without compensating the landlord.

Lastly, the term emblements refers to crops that are grown by a tenant and can be harvested after the termination of the tenancy. This term does not apply to the case of ice cream coolers.