A fixture , as a legal concept, means any physical property that is permanently attached ( fixed ) to a real property (usually land) Property that is not affixed to a real property is considered chattel . Schedules are treated as part of real property, especially in terms of security interests. A classic example of equipment is a building, which - in the absence of a conflicting language in a sales contract - is considered part of the land itself and not a separate part of the property. In general a test to decide whether an article is a fixture or chattel that alternates on the purpose of the attachment. If the goal is to increase the land, the article will likely be a fixture. If the article is affixed to increase the use of chattel itself, the article is most likely an item.
The Chattel property is converted into a fixture by the attachment process. For example, if a piece of wood sits on a wooden yard it is a chattel. If the same wood is used to build a fence on the ground it becomes a fixture for the real property. In many cases, the determination of whether the property is a fixture or a chattel will alternate at the level of the property attached to the ground. For example, this problem appears in the case of trailer homes. In this case the characterization of a house as a chattel or realty will depend on how permanently installed - like whether the trailer has the foundation.
Characterizing properties as a fixture or as a chattel is important. In most jurisdictions, legislation that respects the registration of security against debt, or evidence that money has been lent on collateral property, is different to property rather than for real property. For example, in the province of Ontario, Canada, mortgages on real property should be registered at the local or regional land title office. However, the mortgage on goods must be registered in a provincial-wide registry set under the Personal Property Security Act .
In the case of a trailer's house, whether it's a fixture or a chattel has an influence on whether a real property mortgage applies to a trailer. For example, most mortgages contain clauses that prohibit borrowers remove or destroy equipment on the property, which would lower the value of security. However, there are cases where the lender lends money based on the value of the trailer's house on the property, where the trailer was subsequently removed from the property. Similarly, a given chattel mortgage to allow someone to buy trailer homes can be lost if the trailer is later attached to the actual property.
The law on equipment can also cause many problems with the property being rented. The equipment installed by the tenant belongs to the landlord if the tenant is evicted from the property. This is the case even if the fixture has been legally removed by the tenant while the lease is in good shape. For example, hanging lamps hanged by tenants can belong to landlords. Although this example is trivial, there are cases where the heavy equipment put in the factory has been deemed to have become equipment even though it is sold as a good.
Since the value of the equipment often exceeds the value of the embedded land, the lawsuit to determine whether a particular good is a general good or equipment. In one case in Canada, the provincial government argued that a large earthen dam is a dead object, because the dam is only in place by gravity and not by the type of affixation (claim rejected). In the sale of land, equipment is treated as part of the land, and may not be transferred or changed by the seller prior to the transfer of land.
Schedule is known in civil law as an important part.
Video Fixture (property law)
Trade supplies
An important exception to ordinary grooming equipment is the category of trade fixtures (often called "chattel" fixtures) - chattels are installed by tenants on commercial property leased specifically for use in commerce or business. It may always be removed by the tenant, provided the structural damage caused by the removal is paid or corrected. For example, business signboards, display counters, store shelves, liquor bars, and machine tools are often, if not almost permanently, attached to a building or land. However, they remain private property and can be removed by tenants, as they are part of the tenant business.
The economic logic behind this exemption for trade equipment takes into account that if the tenant can not remove it, the landlord will assume the responsibility of fulfilling their tenants with such equipment and materials.
By deduction, therefore, the trade fixture is not a fixture at all. His name is misleading, because equipment, by definition, is a real property that must remain with real estate when the seller sells it or the tenant leaves the lease. A "fixture" of trade is not a real property, but a private property of tenants.
The owner does have some protection. Any damage to the real property caused by the removal of the tenant of trade equipment shall be fixed or paid by the lessee. If trade equipment is not removed when the tenant moves out, the trade equipment becomes the property of the landlord through the accession process. For example, if a restaurant goes bankrupt and the owner forgives his right and the cost of wiping out all the kitchen utensils, dinner chambers and other trade supplies, the trade equipment belongs to the landlord. In this way, they will no longer be a trade fixture and can actually become a regular fixture, then a real property.
Maps Fixture (property law)
Legal in Australia
In the absence of agreement between the parties, the doctrine of equipment, subject to the law, operates to settle the contest about the title to the object.
Is a trait by nature, being a fixture based on all circumstances, around their annexation to the ground, depending on (i) the purpose and (ii) the level of annexation. Semble, it is a mixed question of fact and law, must be determined objectively, subjective intentions into consideration.
Annexation intent
The intention is to be ascertained from the relationship of the complainant to the landowner, when the use of such goods is considered, not from the parties' agreement. Objects brought to the ground by tenants can be equipment, and this fact can be a significant determinant factor.
Anxiety objectives
Since Palumberi v Palumberi, a greater emphasis has been placed on the goal of annexation. Each case depends on its own facts, but a guidance test, whether a chattel has been fixed with the intention that it will remain in a 'permanently or indefinitely or substantially' position, or only for some temporary purpose.
Level of annexation
Where the object does not rest with its own weight, this will raise an argument that chattel is a fixture. Objects that are not pasted can become fixtures especially when they will be used for a large period.
Further indicators include whether the object can be detached without substantial damage caused, whether it is fixed for a better enjoyment of the soil, or the object itself, the time period used and its function, the function served by its annexation, and whether the renewal cost will exceed the value of the property.
Tenant removal rights
Tenant's right to transfer does not apply to agricultural equipment under common law. However, under the laws of New South Wales, tenants may wipe out agricultural equipment under certain circumstances, subject to legal rights of landowners in connection with equipment.
In most commercial real estate leases, the lessee has an obligation to recover the lease repairs back to the basic building conditions at the expiry of the lease term.
See also
- Quicquid plantatur solo, solo cedit
References
Source of the article : Wikipedia
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