Fixtures summary PDF

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! LIMITS&TO&LAND:&FIXTURES& FIXTURES& • Goods! /! a! chattel! (personal! property)! can! be! affixed! to! the! land,! and! once! affixed,! will! become!part!of!the!land!(real!property).!! • This!will!bring!about!a!change!in!ownership!–!the!chattel!(fixture)!is!now!the!property!of! the!landowner!instead!of!the!chattel!owner.!! • Comes!from!the!Latin!phrase!“Quicquid'plantatur'solo,'solo'cedit”'(whatever!is!planted!in! the!soil,!belongs!to!the!soil)! ! The!difficulty!in!this!area!of!law!is!determining!when!goods!have!become!fixtures! Issues!may!arise!between:!! • Vendor! and! purchaser! of! land.! Does! the! land! purchase! include! aboveground! pool?! TV! antenna?!Can!the!vendor!take!these!away?!!! • Landlords!and!tenants.!Special!rules!exist!about!tenants!putting!up!fixtures! • The!question!whether!a!chattel!has!become!a!fixture!is!a!question!of!law:!Reynolds'v'Ashby' &'Son! ! Consider! all!the!circumstances!to!determine!the! objective!intention!with! which!the!article! was! put!in!place,!two!considerations!(Holland'v'Hodgson):!!! 1. The!degree!of!annexation!(extent!of!attachment!to!the!land)!! 2. The!object!of!annexation!(apparent!purpose!of!attachment)! ! 1. DEGREE&OF&ANNEXATION& • The!greater!the!degree!of!annexation,!the!more!likely!it!is!that!goods!have!become!fixtures! • Belgrave'Nominees'v'Barlin-Scott'Air-conditioning' § If!the!object!is!in!any!way!affixed!to!the!land,!then!it!is!presumed!to!be!a!fixture' § Even!slight!fixing!to!the!land!is!enough!to!raise!the!presumption!that!a!chattel! is!a!fixture' § The!burden!of!proof!lies!on!the!party!arguing!that!the!object!is!a!chattel' • If!the!item!is!attached!then!the!burden!of!proof!lies!with!the!party!claiming!the!item!is!a! chattel! • If!the!item!is!unattached!then!the!burden!of!proof!lies!with!the!party!claiming!the!item!is! a!fixture! • Even!item!not!attached!can!be!considered!a!fixture!e.g.!D’Eyncourt'v'Gregory'(1866)! • Objects,!which!rest!by!own!weight,!may!be!fixtures!if!they!have!intended!to!become!part! of!land:!National'Australia'Bank'Ltd'v'Blacker'(2000)'' • An!object!resting!on!its!own!weight!is!presumed!to!be!a!chattel! o The!burden!of!proof!is!on!the!party!claiming!it!is!a!fixture! • So! heavy! there! is! no! need! to! tie! it! to! foundation! –! marble! statues,! substantial! garden! ornaments! ! Elitestone)Ltd)v)Morris)[1997])) • Strength!of!annexation! • Wooden!bungalows!resting!on!concrete!pillars!-!fixtures,!or!become!part!of!the!land! • An!object!that!cannot!be!removed,!except!for!its!destruction,!cannot!be!intended!to!remain! as!a!chattel! • Three-fold!classification;!a!chattel,!a!fixture,!part!and!parcel!of!the!land!itself! • Looked!then!at!the!object!of!annexation! ! 2. OBJECT&OF&ANNEXATION& • Object!or!purpose!of!annexation!

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Intention! of! parties! may! be! relevant,! but! ultimately! an! objective! intention! –! look! at! facts:! Pegasus'Gold'Australia! o Subjective! intention! may! be! relevant! and! admissible! provided! that! it! does! not! prejudice!the!interests!of!any!third!parties:!National'Australia'Bank'v'Blacker'(2000)!! Consider!the!nature!of!the!chattel,!the!manner!it!can!be!used,!the!title!and!aims!of!the!affixer,! ease!of!removal! Was!the!chattel!joined!to!the!land!for!its!better!use!as!a!chattel!OR!for!the!improvement!of!the! land?!–!reasonable!person! o Belgrave'Nominees'Pty'v'Barlin-Scott'Air-conditioning!-!The!purpose!of!installing!the! air!conditioning!plant!was!clearly!not!for!the!better!enjoyment!of!the!plant,!but!for!the! permanent!improvement!of!the!land! o The!same!item!used!in!different!ways!might!be!a!fixture!in!one!case!and!a!chattel!in! another:!Holland'v'Hodgson'(1872)!! § Blocks!of! stone! placed!on! top!of! each!other! without! mortar!to! form!a! stone! wall!would!become!part!of!the!land,!but!the!same!stones,!if!in!a!builder’s!yard! and!stacked!as!a!wall!for!convenience!sake,!would!remain!chattel! o Leigh'v'Taylor'[1902]'-!Tapestries!affixed!but!remained!as!chattels!(cannot!be!viewed! without!hanging!up,!can!be!removed!without!damage)! o Re' Whaley' [1908]' -!Tapestries! affixed! and! were! classed! as! fixtures! (to! enhance! the! character!of!the!Elizabethan!house,!had!been!cut!to!size!of!the!doorway)!

! A&MORE&HOLISTIC&APPROACH& Conti!J!in!National'Australian'Bank'v'Blacker!(2000)!listed!a!range!of!factors!for!consideration:! • Whether!the!attachment!was!for!the!better!enjoyment!of!the!property!generally!or!for!the! better!enjoyment!of!the!land!and/or!buildings!to!which!it!was!attached! • The!nature!of!the!item! • Whether!it!was!intended!to!be!in!position!temporarily!or!permanently! • The!function!to!be!served!by!annexing!the!item! ! CHATTELS&ANNEXED&WITHOUT&PERMISSION& Brand'v'Chris'Building'Co'Pty'Ltd'(1957)!VR!625! • Generally,!an!item!annexed!to!another’s!land!without!permission!cannot!be!recovered!by! the!affixer! • The!defendant!mistakenly!built!a!house!on!the!plaintiff’s!land! • The!plaintiff!sought!a!restraining!order!to!demolish!the!house,!but!the!defendant!claimed! that! the!plaintiff! knew!about! the! mistake!at! the! beginning!of! construction,!but! took! no! steps! to! stop! it,! and! undertook! to! give! the! plaintiff! the! choice! to! either! (a)! have! the! property!removed,!or!(b)!keep!it!for!2145p! • Hudson!J!entered!judgment!for!the!plaintiff,!holding!that!in!the!absence!of!something!in!the! nature! of! fraud! of! the! plaintiff’s! part,! there! was! no! equitable! principle! upon! which! the! defendant!could!rely!to!defeat!his!claim! ! TENANTS&FIXTURES&AND&REMOVAL& • Different!rules!apply!to!tenants!(leasehold!relationship)!who!affix!chattels!to!land! • At!common!law,!tenants!of!leasehold!or!life!estates!are!entitled!to!remove!fixtures!that!they! installed!for!domestic,!trade!or!ornamental!purposes!and!not!for!the!permanent!improvement! of!the!land! o There!is! an!assumption! that!tenants! are!not!intending!to! make!valuable! gifts!to! others!when!they!attach!thing!to!the!land! • The!same!rules!apply!as!to!preliminary!question!of!whether'the!chattel!has!become!a!fixture! • The!tenant!will!be!liable!to!repair!damage,!but!if!its!removal!would!cause!serious/irreparable! damage!to!the!land!or!destroy!the!fixture,!then!it!is!permanent:!Spyer!v!Phillipson![1931]!

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! If! a! tenant! does! remove! such! fixtures! they! are! liable! in! waste! and! the! implied! covenant!to!use!the!premises!in!a!tenant!like!manner! A!tenant’s!removal!of!a!permanent!fixture!without!the!landlord’s!consent!is!not!trespass,!but! waste!-!it!might!also!be!a!breach!of!a!leasehold!covenant! o

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! Residential'Tenancies'Act'1995!(SA)!s!70!! Alteration!of!Premises:!! (1)!A!tenant!must!ask!permission!before!altering!premises;!! (1a)!A!Landlord!must! not!unreasonably!withhold!consent!to! an!alteration!that!is!necessary! for! provision!of!infrastructure!or!a!service;!! (2)!A!tenant!may!remove!a!fixture!unless!its!removal!would!cause!damage;! (3)!If!removal!causes!damage!the!tenant!must!notify!the!landlord!and!at!the!option!of!the!landlord! compensate!them!for!the!damage!or!repair!the!premises! ! • Under!a!fixed!term!tenancy!fixtures! must!be!removed!before!the!tenancy!expires:!Geita' Sebea'v'Territory'of'Papua!(1941)!! • If!the!tenancy!is!not!a!fixed!term!leases!then!the!tenant!generally!has!a!reasonable!time!to! remove!fixtures:!D’Arcy'v'Burrelli'Investments'Pty'Ltd!(1987)!! • It!is! worth!noting!that!at! common!law! (applies!in!South!Australia)! agricultural!fixtures! cannot!be!removed!by!a!tenant:!Elwes'v'Maw!(1802)! ! CHATTELS& FIXTURES& Definitive! classes! established! from! common! Definitive! classes! established! from! common! law:! law:! • Satellite!dish!! • Things!bolted!to!floor!! • Central!heating! • Mobile! homes! –! intention! demonstrably! • Installed!pump! intended!to!be!removable!! • Firmly! fixed! –! may! remain! chattel! if! • Elevator,!video/alarm! purpose! was! merely! to! facilitate! • Pool!filter! enjoyment! as! chattel.! Degree! of! • Sleepers!embedded!in!stone! connection! was! no! more! necessary! for! • Air!conditioner!in!walls! achieving! that! purpose! –! Tapestries,! • Fence!erected!to!improve!land!! display!cases,!blinds.!! ! ! Held!to!be!fixtures:!! • Fiberglass!house!displayed!for!12!months,! Held!to!be!chattels:!! affixed! by! steel! spikes! and! plates! to! • Demountable!house!on!gold!mining!lease! (frequently!moved):!Stephen!v!Bell! ground:!Wellsmore!v!Ratford! • Demountable!house!even!if!connected!to! • Machinery!!! sewerage! and! electricity:! Permanent! o Cream! separator! (by! screws! to! Trustee!v!Esanda!Corp!!! wooden! blocks,! to! concrete! block! in! ground):! Grigor! v! international! • Satellite! dishes,! etc.:! Macrocom! v! City! West!Centre!!! Harvester! o In! a! brick-making! machinery! ! (bolted! to! concrete! bases):! Fixed:!!! Commissioner! of! Stamps! v! L! • Oak! panelling! (special! quality! –! for! Whiteman!! enjoyment! of! chattel! not! as! part! of! ! premise):!Spyer!v!Phillipson!! Not!fixed!to!ground!! • Poultry! pens! (50cm! into! soil):! Caley! v! • Elizabethan! portraits! (forming! part! of! Rogers!!! theme!of!room):!Waley!!! • Printing! presses! (purpose! of! annexation! • Sculptures,! vases! and! stone! garden! seats:! to! hold! steady! while! in! operation):! A-G! D’Enycourt!v!Gregory!!! (Cth)!v!RT!Co!

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• Heavy!dog-grates:!Monti!v!Barnes!!! Queenslander-style! House! (demountable! but! not! a! portable! home):! Reid! v! Smith! ! ! *Affirmed:!Elitestone!v!Morris!! Various! air-conditioning! units,! some! affixed! more! firmly! than! other;! all! looked! upon! as! a! single! system:! Bank! of! Melbourne!v!CBFC!!! Air-conditioning! unit! (sitting! on! pads! to! reduce!noise):!Belgrave!nominees!v!BarlinScott!!! Water! tank! (Sitting! on! frame! attached! to! ground):!Perking!v!Galloway!!!

Steel! cover! to! exhibition:! Southbank! v! Steek!Finne!Fabrications!

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