Distinction between real property and personal property (Nature of Land - Core principles of land law)-FS Flashcards
What is the primary legal distinction between a fixture and a chattel in property law?
A fixture is considered part of the land and automatically passes with the sale unless excluded by contract. A chattel is personal property, not included in the land, and only passes with the sale if explicitly mentioned in the contract.
What is the ‘degree of annexation’ test, and how does it help classify an item as a fixture or a chattel?
The degree of annexation test assesses how firmly an item is attached to the land. If an item is firmly or permanently affixed, it’s presumed a fixture. If it is lightly or temporarily attached, it’s presumed to be a chattel.
What does the ‘purpose of annexation’ test evaluate when determining whether an item is a fixture or a chattel?
The purpose of annexation assesses why the item was attached. If the intention was to make a lasting or permanent improvement, the item is more likely a fixture. If the attachment is for temporary use or convenience, it’s more likely a chattel.
How do courts determine the legal status of an item when the degree and purpose of annexation give different indications?
Courts apply both the degree and purpose of annexation tests together, using an objective assessment. If one test indicates a fixture and the other a chattel, the overall intent and contextual integration guide the final classification.
In a sale of land, what happens if an item is deemed a fixture but not mentioned in the contract?
If an item is a fixture and not mentioned in the contract, it is still legally part of the land and cannot be removed by the seller. Its inclusion in the sale is implied, based on its legal classification.
In what situation does a legal dispute about fixtures and chattels typically arise during a property sale?
Disputes arise when items are not specified in the contract, and one party believes an item was included (as a fixture) while the other treats it as excluded (as a chattel). This creates ambiguity about ownership post-sale.
What guiding principle did the courts articulate regarding permanence and objective intention when classifying property items?
The courts held that if an item, viewed objectively, is intended to be permanent and to provide a lasting improvement to the property, it is a fixture. If the attachment is only for use or enjoyment, it remains a chattel.
