How do you determine if an item is “permanently installed and built-in” with regard to Paragraph 2 of the One to Four Family Residential Contract?

Courts consider three factors when determining whether an item of personal property has been so permanently attached as to constitute realty:

  1. Will the property be damaged by the removal of the item? If so, to what extent?
  2. Is the item customized for the property?
  3. Was the installation intended to be permanent or temporary?

Courts consider the answer to the third question—the party’s intention—the predominant deciding factor, while answers to the first two questions constitute evidence of that intention. However, testimony of an intent for the item to be temporary will not prevail if there is undisputed evidence to the contrary. [Logan vs. Mullis, 686 S.W.2d 605, 607 (Tex. 1985)]

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