What are the three tests to determine if an item is considered a fixture in real estate?

The correct answer identifies the three essential tests used to determine whether an item is classified as a fixture in real estate: method of annexation, fitness for the property, and intention of the parties.

The method of annexation refers to how the item is attached to the property. If it is permanently attached or affixed, it is more likely to be considered a fixture. For example, a built-in bookshelf is attached in such a way that removing it would cause damage to the property, indicating it is a fixture.

Fitness for the property assesses whether the item is necessary or beneficial for the property's use. An item that enhances the property's utility, such as a central air conditioning unit, will likely be deemed a fixture because it contributes to the functionality and value of the property.

The intention of the parties involves understanding what the parties meant when they installed or included the item in the transaction. If it was clearly intended to be a permanent part of the property, it is likely considered a fixture, as this reflects the understanding and agreement between the buyer and seller regarding property components.

The other options, while they may contain relevant terms related to real estate, do not accurately encompass the specific criteria used in real estate law to define fixtures. Thus, focusing on the