15. Fixtures

Question 1

How may a chattel become a fixture?

Answer 1

Chattel is incorporated into structure => Loses its identity

• Bricks built into a building (Wall)
• Concrete poured into a foundation (Bridge)

Chattel is identifiable BUT removal would cause considerable damage

• Heating pipes embedded in the wall
• Heating pipes embedded in the house floor

Question 2

What is the difference between common and divided ownership?

Answer 2

Common ownership
- Owner owns chattel + land

Divided ownership

• Owner owns chattel
• Another owner owns land

Question 3

How may a fixture in lender/buyer cases be determined in a common ownership?

Answer 3

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

Question 4

How may a fixture generally be determined in a divided ownership?

Answer 4

Party who made annexation’s ‘subjective’ intent (Accessions - goods attached to other good)

Question 5

How may a fixture in tenant/licensee/life tenant cases be determined in a divided ownership?

Answer 5

Agreement re chattel to become fixture

Removal would cause substantial damage

Removal would destroy chattel

Question 6

How may a fixture in tenant/licensee/life tenant cases not be determined in a divided ownership?

Answer 6

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

Question 7

How may a fixture in trespasser cases be determined in a divided ownership?

Answer 7

1) Adverse trespasser

2) NO Statute of Limitations

Question 8

How may trespassers recover their chattels in a divided ownership?

Answer 8

1) Good faith trespasser

2) Recover value added to land (some states)
- NOT improvement construction cost

Question 9

What is the difference in determining fixtures in a common and divided ownership?

Answer 9

Common ownership
- Objective intent

Divided ownership
- Subjective intent