7. Fixtures Flashcards
What is a fixture?
A chattel that has become so connected to real property that a disinterested observer would consider it part of the realty.
A fixture ceases being personal property and becomes part of the realty.
True or False: An agreement between the landlord and tenant is controlling on whether the chattel annexed to the premises was intended to become a fixture.
True
In the absence of an agreement to the contrary, a tenant may remove chattel that he has attached to the premises as long as:
i.) the removal does not leave unrepaired damage to the premises; or
ii.) cause the virtual destruction of the chattel.
when does tenant have to remove the chattel?
This removal must occur before the end of the lease term, and the tenant does have a duty to repair damages resulting from the removal of the chattel.
When does one’s ownership of a chattel become a fixture to the land?
When it is annexed to the real property, appropriated to the use of the land, and the annexor intends it to be a fixture.
What criteria deem a chattel annexed to the land?
- It is permanently attached to real property,
- difficult to move solely based on its own weight, or
- constructively annexed by being specially designed for the property.
Constructive annexation refers to the relationship between the chattel and the property.
How is a chattel deemed to have become a fixture?
If it is so necessary or convenient to the use of the land that it is commonly regarded as part of the land.
How does the court judge the appropriation of an annexed chattel?
The court considers the nature of the land or structure to which the chattel is affixed.
What standard is used to judge intent to annex a chattel in court?
A reasonable person standard.
What factors does the finder of fact consider regarding intent to annex?
- The nature of the chattel
- The degree of annexation
- The appropriateness of the chattel to the property’s use.
What happens to fixtures when both the chattel and the land are owned by the same person?
A deed to the real property will transfer all of the fixtures on the property.
However, the buyer and seller may agree that the seller may remove certain fixtures from the property before title is transferred to the buyer.
What is the effect of a fixture on land later encumbered by a mortgage?
The mortgage covers both the land and the fixture.
What is the effect of a fixture on land already encumbered by a mortgage?
The prior mortgage covers the chattel, giving the mortgagee a larger security interest.
Is an owner free to sever a fixture from the land?
Yes, if the fixture and its land share the same owner.
What is a constructive severance of a fixture?
Occurs if the landowner expressly reserves the fixture in a land sale contract or deed of conveyance.
