IV. Fixtures

Question 1

How fixtures questions arise on bar exam

Answer 1

• FIRST: Landowner contracts to sell property and the contract is silent as to whether the owner can remove the chattel before closing.
• SECOND: Tenant has installed some item of personal property and the lease agreement is silent as to whether the tenant can remove the chattel when he vacates the leased premises.

Question 2

General Rule for Fixtures

Answer 2

• Fixtures become part of the real property
• Therefore they CANNOT be removed

Question 3

How to determine whether it has become a fixture

Answer 3

• Turns on intent: Did the one doing the installing INTEND that the item of personal property remain with the real property as a fixture
• Can be expressly agreed upon between the parties, which is controlling
• To determine intent:
  
  • 1) DEGREE OF ATTACHMENT (more that has to be done to remove, more likely a fixture)
  • 2) GENERAL CUSTOM: type of thing normally taken with seller
  • 3) DEGREE OF HARM TO PROPERTY ON REMOVAL: if can be removed without substantial harm, than assumption that it is not a fixture. Tend to favor tenants/sellers on this
  • 4) TRADE FIXTURES: Never fixtures–chattels or items of property used in business or trade. Always removable (power saw in lumber mill)

Question 4

When must the item be removed if classified as personal property

Answer 4

• Tenant: must be removed before the tenant vacates at the end of hte lease
• Seller: must remove before closing (or seller loses chattel)