Fixtures Flashcards
Why is it necessary to understand if an item is a fixture or not?
Necessary for when land is being sold but also when a lender takes possession of land if a borrower defaults on a mortgage payment.
What is the two part test for determining if an object is a fixture of a chattel?
- The degree of annexation test
- The purpose of annexation test
What is the degree of annexation test?
The more firmly the object is attached to the land or building, the more likely it is to be classified as a fixture. Even if it is fairly easy to remove, it’s character is still prima facie that of a fixture.
If, on the other hand, it rests on the land by its own weight, it is generally considered to be a chattel.
What is the purpose of annexation test?
Considers why the object is attached to the land/building.
It asks whether the annexation was for the more convenient use or enjoyment of the chattel as a chattel, or to enhance the land or building in some way.
What test takes priority?
The purpose of annexation test takes priority.
The degree of annexation test raises a presumption, that the thing in question is or is not a fixture. This presumption can then be rebutted by objectively looking at the purpose.
What are examples of objects that are likely to be classed as chattels?
*Ornamental items are often chattels e.g. pictures
*Carpets and curtains are likely to be chattels
*Light fittings attached by screws are likely to be chattels
*Kitchen appliances (e.g. a washing machine) are likely to be chattels if not integrated and can be removed without causing damage
What are examples of fixtures?
*Kitchen units are fixtures
*Items installed by a builder are more likely to be fixtures
*Bathroom fittings (i.e. the toilet / baths) are fixtures
*If chattels are incorporated into the architectural design of a building, they may be classified as fixtures even though they are not firmly affixed.
*If a chattel cannot be removed from the land without destruction/demolition, it will be deemed intended to form part of the land and therefore a fixture.
In practice, are all fixtures transferred to the buyer?
A conveyance of land (i.e. a transfer) automatically includes all fixtures in the property, unless the items are specifically excluded from the sale in the contract. If the contract is silent and does not specifically exclude any items from the sale, the seller may not remove a fixture after they have contracted to sell the property to another.
To avoid dispute in relation to fixtures and chattels what form is completed?
To avoid a dispute about whether an item is a fixture or chattel, it is common practice for the buyer and seller to agree which items are to pass on the sale by completing a Law Society Fixtures and contents form (Form TA10) which forms part of the contract.
