What is a fixture in the context of secured transactions?

A fixture, in the context of secured transactions, refers to a movable thing that has been affixed to real property in such a way that it becomes part of that real property. This means that the item, while it may have originally been movable, is now attached to the land or a building in a manner that makes it more challenging to remove without causing damage to either the item or the property itself.

The legal significance of fixtures arises primarily in secured transactions because when they become part of the real estate, they are typically treated as part of the collateral for a secured loan. This can affect the priority of security interests in different types of property, particularly in the context of real estate law where a lender may need to consider both the real property and any fixtures attached to it when securing interests.

The other options listed do not accurately describe what constitutes a fixture. Equipment exclusively used in farming might be equipment that could be moved and might not be affixed to land in a way that makes it a fixture. Items sold at retail and raw livestock products do not have the characteristics of fixtures, which are specifically about items that are attached to real property and participate in its use or function. Thus, the definition that captures the essence of what a fixture is and how