Does a restaurant’s kitchen fit-out belong to the seller or the landlord?

A listing may say the sale includes a fully equipped kitchen. That phrase does not tell you who owns the hood, the walk-in cooler or the grease trap. Some pieces belong to the tenant, some may belong to the landlord, and some were installed by a previous tenant. Sort that out before you rely on the equipment in your plans.

Start with the lease

Find the clause on improvements, alterations and what happens to them at the end of the term. Some leases say that anything attached to the building becomes the landlord’s. Others let the tenant remove its own equipment but require repairs afterward. Your lawyer can tell you how the wording applies, and what the landlord’s consent is needed for.

Fixed items and movable equipment

Ask the seller to split the asset list into two groups. Items such as the hood, ductwork, grease trap and a built-in bar may be treated as fixed, while ranges, fryers, prep tables and a freestanding walk-in may be movable. Your lawyer confirms which is which. Ask for purchase records or financing papers on the larger pieces, and check for any lender with a claim on them.

Ask the landlord to confirm

The landlord knows what it believes it owns. A short written confirmation of what stays with the building and what the tenant may keep or sell removes a common source of disputes. Your lawyer can ask for it as part of the lease assignment. Read what to weigh before renovating as well, because ownership affects who pays to replace a piece.

If any item is leased rather than owned, this page on leased equipment covers what to ask next.