Question 83

The newly installed unit becomes real property.

The new furnace with central air conditioning replaces an older unit and, since it is permanently installed in the home, it qualifies as real property.

A) personal property.

Personal property refers to movable items that are not affixed to land or buildings. Since the furnace is permanently installed and integral to the home, it does not fall under this category.

B) a trade fixture.

A trade fixture is a piece of equipment or furniture that a tenant installs for business purposes and can be removed upon lease termination. The furnace is not a trade fixture, as it is part of the homeowner's residential property and not used in a commercial context.

C) chattel.

Chattel refers to personal possessions that can be moved. Since the furnace is fixed to the property and intended for long-term use, it does not qualify as chattel.

D) real property.

Real property consists of land and anything permanently attached to it, such as buildings and fixtures. The newly installed furnace, being a crucial component of the home's heating and cooling system, is classified as real property.

Conclusion

The newly installed furnace is definitively real property because it is permanently attached to the home and integral to its functionality. In contrast, options A, B, and C fail to accurately describe the nature of the furnace, as they pertain to movable or temporary items. Thus, option D is the only correct classification in this context.