Fixtures why is the distinction between fixtures and

4.3 Fixtures
Why is the distinction between fixtures and chattels necessary?
o Vendor and purchaser – is the vendor entitled to remove certain objects?
Is the physical object a fixture or a chattel?
Elements
1. Determine the rebuttable presumption that applied by virtue of how the item is fixed to
the land
2. whether the presumption is rebutted determines on the intention of the fixer
1. How was the item fixed?
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LWB236 Property Notes – Susan Hedge
 Item fixed other than by it’s own weight is prima facie a fixture – burden of proof on
person who wishes to establish otherwise
2. Intention when affixed
 If for the better use and enjoyment of the land <> fixture
 If for the better use and enjoyment of the object <> chattel
 Is the intention that that articles become part of the land, or that they remain as chattels:
Reid v Smith
 All circumstances of the case are relevant
 Length of intended annexation –
o Remain in position permanently, or for an indefinite period or substantial period
of time <> fixture
o Remain in position temporarily <> chattel
 Reason for annexation
 Has the object been affixed merely to steady it during its operation? This may
indicate it is only a chattel: Coroneo
 Is the object part of the business and nature of the land?
 Use of object in connection with essential nature of the land is important eg.
irrigation system to farm: Eon Metals v Commissioners of Taxes
 Will damage be caused by removal
 if substantial damage or loss of value would result, it is more than likely going to
be a fixture: APAC v Coroneo
When the fixture/chattel dichotomy may be relevant
 mortgagee exercising power of sale in the case of default will want to sell all parts of the
land – in the absence of contrary agreement, mortgagee has control over fixtures but not
chattels
 in the case of a lease, any object which when affixed to the land becomes a fixture
belongs to the lessor (but opportunity for lessee to remove fixtures)
 in the case of a life tenant, fixtures pass to the beneficiaries of realty whereas chattels
pass to the beneficiaries of their personal estate
 similar in succession generally
Examples of fixtures and chattels
Fixtures
 Holland v Hodgson
o Looms attached to a beam on the wall with nails <> fixture
o