Final answer:
Appliances installed by a tenant for a restaurant business are considered trade fixtures and typically remain personal property, which means they can usually be removed at lease termination. The tenant is responsible for any damages caused by such removal. It's important for such terms to be explicitly stated in the lease agreement.
Step-by-step explanation:
The question pertains to whether appliances installed by a tenant in a leased space for restaurant business remain personal property or become a part of the real estate. These appliances are considered trade fixtures and are typically treated as the tenant's personal property. They can be removed at the end of the lease, provided the removal does not cause any damage to the premises. If removal does cause damage, the tenant is generally responsible for the repairs.
However, if the appliances are not removed by the termination of the lease or as stated in the lease agreement, they can become the property of the landlord. This is consistent with the concept of fixtures, which are items of personal property that have been attached to leased property and are used in the course of conducting business.
It is important for tenants to negotiate these terms before signing a lease to avoid misunderstandings regarding the termination of the lease and the ownership of the appliances that are used in the business and affixed to the property. Understanding the difference between fixed costs and leased equipment/fixtures is critical in this context.