Fixture (property law)
In property law, a fixture is an item of personal property that has become so attached to real property that it is considered legally part of the real property. Determining whether an item is a fixture is important because it dictates whether ownership of the item transfers with the real property when it is sold or conveyed. Generally, if an item is a fixture, it transfers with the real property; if it remains personal property, the seller may remove it.
Courts generally apply a multi-factor test to determine whether an item has become a fixture. While the specific factors and their relative weight can vary by jurisdiction, the following three factors are commonly considered:
- Attachment: The degree to which the item is physically attached to the real property. The more permanent and difficult the attachment, the more likely the item is a fixture. Is it easily removable without causing damage to the real property?
- Adaptation: The extent to which the item is adapted to the real property. If the item is specially designed or customized for the property, or if the real property is designed or adapted to accommodate the item, it is more likely to be considered a fixture.
- Intention: The intention of the person who attached the item to the real property. This is often considered the most important factor. What was the intent when the item was affixed? Was it intended to be a permanent improvement or a temporary addition? Objective evidence of intent is typically used, such as written agreements or statements made at the time of installation.
If an item is determined to be a fixture, it belongs to the owner of the real property. Disputes regarding whether an item is a fixture frequently arise in the context of real estate sales, mortgage foreclosures, and landlord-tenant relationships. In landlord-tenant situations, the concept of "trade fixtures" may apply, allowing a tenant to remove certain fixtures used in their business, even if they would otherwise be considered fixtures, provided they can do so without causing substantial damage to the property.
It is important to consult with legal counsel to determine the applicable rules regarding fixtures in a specific jurisdiction and to assess the specific facts of a given situation.