Module 3.3: Man-Made Attachments Flashcards
Fixtures
Fixtures are man-made attachments that were once personal property, but have since become attached to the land and are now presumed to be real property
T/F: Fixtures transfer with the land when it’s conveyed, even if they aren’t specifically mentioned in the purchase agreement or deed.
True
CA’s statutory fixture test AKA method of attachment test
whether an item has been permanently attached to land, and is thus a fixture, depends on how it is attached
An item is permanently attached when it is:
- attached to the land by roots (as with trees, shrubs, and vines),
- embedded in the earth (like foundation walls, septic tanks, or sprinkler systems),
permanently resting on the land (as with houses, gazebos, or barns), or - attached by any enduring method (such as with cement, plaster, nails, bolts, or screws)
actual annexation
physical attachment
T/F: Physical attachment is absolutely necessary for an item to qualify as a fixture
False
The force of gravity, for example, may be sufficient to render a theoretically moveable item immovable.
Ex Gazebo:
large, prefabricated gazebo on their property.
The gazebo was brought in on a flatbed truck and now rests on cinderblocks.
T/F: the gazebo probably is a fixture
Even though it is not permanently or physically attached to the property, the gazebo would probably be considered annexed to the property, and would be a fixture
True
Even though it is not permanently or physically attached to the property, the gazebo would probably be considered annexed to the property, and would be a fixture
T/F: If removing an item of personal property would result in damage to the item or property, it may also be considered a fixture
True
T/F: keys to a house’s front door = a fixture
True
T/F: Some small items are completely moveable, but they may still be considered fixtures if they are important to the real estate itself.
True
the Doctrine of _____ states that an item may be so strongly connected with the property that it will be considered a fixture, even though it’s not actually attached
constructive annexation
This fixture test examines whether an annexor’s actions showed the intent to make an item part of the real property
If an annexor intended an item to become part of the realty, under the intention of annexor test, it will be considered real property
T/F: Church pews may be specifically adapted to realty
True
T/F: Trade fixtures may be removed by the tenant unless there is a specific lease provision to the contrary
True
*The tenant is responsible for restoring the property to its original condition
T/F: Certain farming equipment and items, such as small tool sheds or prefabricated henhouses, are called agricultural fixtures and may be removed by the tenant farmers when they leave the property
True
T/F: the parties’ contractual agreement overries any consideration of intent or adaptation to the realty
true
EX:
A lease stated that all fixtures installed in a restaurant became part of the real property and belonged to the landlord at the end of the lease. Cal-Pacific had an unrecorded security instrument in the restaurant equipment, however, and argued that, as trade fixtures, the items belonged to the tenant.
Did the court decide the items belonged to the landlord or the tenant?
The court held that a contractual agreement between the parties takes precedence over general landlord-tenant law, so the usual rules about trade fixtures could be changed by written agreement.
Bridges v. Cal-Pacific Leasing Co. (1971) 16 Cal.App.3d 118.
Secured financing
refers to an arrangement in which personal property or fixtures are used to secure a loan or line of credit
Secured transactions are governed by Article ___ of the Uniform Commercial Code (UCC)
9
When secured financing is used, the loan terms are specified in a
security agreement
financing statement
gives all future buyers constructive notice of a security interest in the fixture
____ records a financing statement when secured financing is used
lender
T/F: The financing statement, when properly recorded, trumps the usual rules regarding fixtures
True
T/F: If a default occurs and the property is sold, items subject to the security agreement can be repossessed by the holder of the security interest—even if the items would normally be considered fixtures
True
T/F: Mobile homes may also be classified as either a fixture or as personal propert
True
T/F: A mobile home that is personal property may only be sold by a licensed mobile home dealer (not a real estate agent)
True
**one exception
T/F:a mobile home that is a fixture will be subject to real estate license law requirements and will be taxed as part of the real property.
True
Whether a mobile home is a fixture or personal property depends on whether or not it has been affixed to the real property. State law says that attachment of a mobile home to a foundation is not enough to show affixation.
Instead, affixation requires the owner to:
(1) obtain a certificate of occupancy, and
(2) obtain a building permit that shows:
- written evidence of ownership of the underlying land, or proof of a lease for more than 35 years (although certain other leases may qualify);
- proof that there are no liens against the mobile home, or that if there are, that the lienholders consent to the attachment to real property; and
- plans and specifications by the mobile home manufacturer or signed by a licensed California architect, that detail the installation of the individual mobile home.
Affixation status is permanent as of ___
the day the certificate of occupancy permit is issued.
The affixation must be recorded in the county where
the real property is located
Once a mobile home is installed as a fixture, the owner can’t remove it without:
providing proof of consent of all parties with an interest in the real property.
1) giving the Department of Housing and Community Development and the county assessor 30 days’ notice of intent to remove, and
2) providing proof of consent of all parties with an interest in the real property.
SUMMARY: Fixtures
Fixtures are man-made attachments that were once personal property, but are now attached to the real estate in such a way that they are considered part of the real property and transfer automatically upon conveyance of the land.
SUMMARY: The method of attachment test
The method of attachment test is a statutory test under which an item of moveable or personal property becomes part of the real estate once it is permanently attached to the land.
SUMMARY: doctrine of constructive annexation
Under the doctrine of constructive annexation, a completely moveable item may be regarded as so strongly connected with the property that it is considered a fixture, even though it is not actually attached to the realty.
SUMMARY: Trade fixtures
Items of personal property installed by a tenant for use in a trade or business, which usually may be removed at the end of the lease term.
QUIZ: In this fixture test, a court will inquire into whether an item is embedded in the earth or rests permanently on the ground.
The method of attachment test states that an item becomes part of the real estate when it is permanently attached to the land by an enduring method.
QUIZ: This doctrine states that an item may be so strongly connected with the property that it will be considered a fixture, even though it’s not actually attached.
Constructive annexation states that an item, such as a house’s front door key, may be considered a fixture even if it isn’t truly attached
QUIZ: This fixture test examines whether an annexor’s actions showed the intent to make an item part of the real property.
If an annexor intended an item to become part of the realty, under the intention of annexor test, it will be considered real property
QUIZ: Under this fixture test, an item that was specifically designed for a property is considered real property.
The adaptation to realty test considers an item a fixture if it was specifically designed for the property or is integral to the property’s use.
QUIZ: This fixture test might examine whether the item was installed by a landlord or a tenant.
The relationship of the parties fixture test will usually assume that items installed by a tenant are personal property, while items installed by an owner are real property.
QUIZ: This type of item may usually be removed by a commercial tenant at the end of the lease term, unless there is an agreement to the contrary.
A trade fixture is an item installed by a commercial tenant that is integral to the tenant’s use of the space. It may be removed by the tenant at the end of the lease term.
QUIZ: The presence of ____ will control whether an item is real or personal property, regardless of any fixture test.
Contractual agreement
If the parties decide in writing how a particular item will be treated, that will control, regardless of how any fixture test might treat the item.
QUIZ: For ____ to become real property, the owner must obtain a certificate of occupancy and a building permit.
Attaching a mobile home to a foundation is not adequate for it to become real property. The owner must obtain a certificate of occupancy and building permit.
QUIZ: T/F: An appurtenance is any right, privilege, or improvement associated with a piece of real property
Appurtenances are rights (such as the right to use air or water) that automatically transfer with the property.
