15. Fixtures Flashcards
How may a chattel become a fixture?
Chattel is incorporated into structure => Loses its identity
- Bricks built into a building
- Concrete poured into a foundation
Chattel is identifiable BUT removal would cause considerable damage
- Heating pipes embedded in the wall
- Heating pipes embedded in the house floor
What is the difference between common and divided ownership?
Common ownership
- Owner owns chattel + land
Divided ownership
- Owner owns chattel
- Another owner owns land
How may a fixture in lender/buyer cases be determined in a common ownership?
Party who made annexation’s ‘objective’ intent (reasonable person) => Consider features;
- Nature of article (importance to normal use of premises)
- Manner of attachment (substantial attachment => likely permanent)
- Amount of potential damage
- Adaptation of item to realty
Constructive annexation
- Uniquely adapted
- Not appropriate to remove
- Keys to doors; Uniquely cut carpet
How may a fixture generally be determined in a divided ownership?
Party who made annexation’s ‘subjective’ intent (Accession)
How may a fixture in tenant/licensee/life tenant cases be determined in a divided ownership?
Agreement re chattel to become fixture
Removal would cause substantial damage
Removal would destroy chattel
How may a fixture in tenant/licensee/life tenant cases not be determined in a divided ownership?
Tenant removes trade fixtures after end of lease (within reasonable time)
- Fixtures for business use
Tenant removes chattel before end of lease
- Tenant repairs any damage
Life Tenant’s representative removes chattel within reasonable time after Life Tenant’s death
How may a fixture in trespasser cases be determined in a divided ownership?
1) Adverse trespasser
2) NO Statute of Limitations
How may trespassers recover their chattels in a divided ownership?
1) Good faith trespasser
2) Recover value added to land (some states)
- NOT improvement construction cost
What is the difference in determining fixtures in a common and divided ownership?
Common ownership
- Objective intent
Divided ownership
- Subjective intent