A chattel is a portable possession, as every schoolkid should know. However, it becomes a fixture if an owner permanently attaches it to a house on a property they own. Naturally, there are exceptions for lawyers to thrive over. Today we consider the reverse proposition. Can a fixture become a chattel?
It Depends On Who Wants to Remove It
Fixtures are chattels which are part of land, which is an immovable asset. Chattels are personal effects. However, it seems logical the owner of a piece of land has the right to remove a fixture from it. Two significant case law decisions determine whether a fixture can become a chattel in England.
Both these cases depend on a two-stage test. We discuss the core issues here. Follow the above links if you wish to delve further. The point of departure is that a purchaser is entitled to the fixtures on a piece of land at the time of offer acceptance. Although there are exceptions, for example, the seller is entitled to remove fixtures up to that point, but obviously not a tenant.
Where to Draw the Line with Fixtures (© Avery Associates)
Two-Stage Test Whether a Fixture Became a Chattel
In the case of Hellawell v Eastwood (1851) the court considered:
- The degree of annexation, meaning the extent to which the item was attached.
- The purpose of the attachment – what did the person have in mind at the time?
Another court reached the same conclusion during Elitestone Ltd v Morris (1997), but expanded the logic as follows:
- The greater the degree of annexation of a chattel, the more likely it is to be a fixture.
- A physical object becomes a fixture if there is consensus it merges with the land.
It follows from this, that a court could decide a fixture was a chattel if it were loosely attached, and obviously not an integral part of a building standing on the subject land under discussion.
A Practical Example from Elitestone Ltd v Morris [1997]
The previous owner of the Morris property had built a wooden bungalow resting on concrete supports attached to the land. The building could only be used in its present location, because removal would have required demolition and reconstruction of the structure.
The court recognized the bungalow was not a fixture per se. This was because of the difficulty of moving it. In fact, the prohibitive effort involved in doing so made it ‘part and parcel’ of the land. In other words there was no question of the fixture becoming a chattel by removing it.
Our house clearance team needs therefore to be mindful of three things when clearing empty houses for occupation by new owners:
- How is a chattel attached to the land, or a building standing on it?
- Is it attached directly, or via another object that is supporting it?
- Could we easily remove the chattel without causing damage to it?
The key point here is that a chattel is a fixture if removing it would cause damage.
If a Chattel is Fixed then Who Owns It?
We had a case where an executor expected compensation for a valuable statue attached to a foundation in a garden, after they agreed the sale. We had to explain that the person who owned the land previously possessed it, but that they had agreed to pass ownership to the buyer.
A fixture cannot become a chattel just because you want it to. This is what the law says, we explained. The case of Aircool Installations v British Telecommunications (1995) reinforces the fact that even a prior understanding may be null and void.
How Well Is This Object Attached? (© Avery Associates)
Can The Owner of the Land Re-Classify the Object?
An owner of a piece of land can do anything to it that is legal, but only for a long as the title is entirely in their name. However, they must do so before conveyance is complete. The Law of Property Act 1925 confirms the old owner loses the right to separate a fixture from the land.
Therefore to Summarise the Matter
An owner of a piece of land – without any restrictions to the contrary – may remove any fixture provided this act does not conflict with any law. They may retain their ownership over the fixture that thereby effectively became a chattel. Or they may dispose of it in any way that is legal.
Any executor negotiating the sale of a house in an estate they are administering, would therefore be well-advised to play open cards with the purchaser. There is a fair-to-good-chance the latter may not even understand the difference between chattels and fixtures. Ten minutes invested in explaining things could save hours of a solicitor’s time.
