Fixtures Why is the distinction between fixtures and chattels necessary The

Fixtures why is the distinction between fixtures and

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4.3 FixturesWhy is the distinction between fixtures and chattels necessary? oVendor 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 land2.whether the presumption is rebutted determines on the intention of the fixer1. How was the item fixed? 25
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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
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