Deborah Caldwell explains why tenants’ lawyers should think carefully about ownership & removal rights of tenants’ trade fixtures
The law governing the distinction between fixtures and chattels is complex and has undergone numerous refinements over the years. The importance of the distinction, in practical terms, is that if an object is a fixture, it is treated as forming part of the land, (and will pass with the land), whereas a chattel remains independent from the land.
Fixtures are chattels that become part of the land as a result of annexation to it, and annexation is a question of fact depending upon the:
- degree of annexation; and
- purpose of the annexation.
In considering (i), the relevant tests are:
- how firmly is the object fastened or affixed to the land; and
- can it easily be removed without injury to itself or to the fabric of the building?
In considering (ii), the question is whether the article was affixed:
- for the permanent and substantial improvement of the building, in which
