A retailer installs special display counters to exhibit her products. At the end of the lease term, the retailer moves to another state, leaving the counters in the store. At this point the counters are considered which of the following?

The correct answer is that the counters are considered real property since the trade fixtures were abandoned.

Trade fixtures are items installed by a tenant for the purpose of conducting business and are typically considered personal property during the lease term. However, when the lease ends and the tenant does not remove these fixtures, they may be deemed abandoned. According to property law, when a tenant leaves their trade fixtures behind, especially without any intentions of retrieving them, these fixtures revert to the property owner and become part of the real estate. This transformation occurs because they are no longer serving a function for the tenant, thus becoming a permanent part of the premises.

The concept of abandonment plays a crucial role here. It indicates the tenant's lack of intent to retain ownership of those fixtures. In scenarios where tenants leave behind their trade fixtures, it can result in alterations to the property that the landlord can then use freely, integrating the fixtures into the real estate itself.

Understanding this transition from personal property to real property reflects the importance of lease agreements and tenant rights regarding fixtures. Recognizing when and how property classifications change is key for real estate professionals.