Fixtures

Question 1

Fixture, Definition

Answer 1

A fixture is a chattel that has been so affixed to land that it has ceased being personal property and has become part of the realty.

Question 2

Common Ownership Cases

Answer 2

Rule: Occurs when the person who brings the property on to the land also owns the land (X buys furnace to install on X’s property). An item is a fixture if the the objective intention of the party who made the “annexation” was to make the item part of the realty.

Question 3

Objective Intent Factors for Fixtures

Answer 3

Factors:

• Nature of the article;
• Manner of attachment;
• Amount of damage that would be caused by removal, and
• The adaptation of the item to the use of the realty.

Question 4

Constructive Annexation

Answer 4

Rule: When article of personal property that is so uniquely adapted to the real estate that it makes no sense to seperate it (e.g., keys to door, custom curtain rods) may be considered a fixture even if it is not physically annexed to the property.

• From MBE question: A custom made bench made out of specific wood that matched the wood of an installed organ is considered a fixture.

Question 5

Divided Ownership Cases

Answer 5

Situation: Owner is not the same person as the person owning the fixture (e.g. trespasser, licensee, tenant). Accession describes the annexor’s intent to make chattels a permanet part of the real estate.

Landlord-Tenant:

• Agreement controls if it exists;
• If no agreement, then tenant can only remove annexed chattels if removal does not substantial damage to the premises or destroy the chattel.
• Must be removed by the end of the lease and tenant is responsible for repair.

Life Tenant and Remaindermen:

• Same as landlord-tenant, except that life-tenant’s represenatatives may remove annexation wihtin a reasonable time after life tenant’s death.

Licensee or Trespasser and Landowner:

• Under the doctrine of annexation, improvements to real property made by a wrongdoer belong to the owner of the real estate.
• However, when the improvements were made by one who mistakenly believed that he or she owned the land on which the improvements were made, principles of unjust enrichment could compel a court of equity to refuse to quiet title in the improvement in the landowner, absent a payment of fair consideration to the “good faith” innocent improver.