Which right allows the lessor to retain improvements made on the premises (not trade fixtures)?

• A. Right to assign or sublet
• B. Right to retain improvement
• C. Right of possession & quiet enjoyment
• D. Right to mortgage

Answer: (B)

The main idea is how improvements become part of the property when they’re permanently attached to the premises. Improvements that are not trade fixtures are considered fixtures and typically belong to the landlord because they’re built into the real estate. That’s why the landlord has the right to retain such improvements at the end of the lease. The other options don’t address ownership of these permanent additions: transferring the lease (assign or sublet) doesn’t affect who owns improvements; possession and quiet enjoyment are tenant protections; mortgages deal with encumbering the property. Trade fixtures are removable by the tenant, but non-trade, permanent improvements become part of the property and remain with the premises.