If you have ever bought or sold property before then you are probably familiar with the term fixture. The general rule when it comes to what constitutes a fixture is that, an object, which is fixed to the property, or land by any means other than its own weight, it is considered a fixture, otherwise it is considered to be a chattel.
If an object is considered to be a fixture then it forms part of the transaction for the property and the buyer gains Title to the object as part of the purchase. In essence a fixture must stay with the property and is considered a part of it.
However there are exceptions to this general rule under the legislation and sometimes a dispute can arise between a buyer and a seller as to whether an object should be considered a fixture.
In the case of Holland v Hodgson (1872) the court considered two circumstances relevant in determining whether an object is a fixture or a chattel. These two circumstances were the degree to which the object is fixed to the property and the purpose of its fixing to the property.
As previously discussed the object will, under this test, generally be a fixture if it is attached to the property by a means other than its own weight. As to the purpose of the fixing, this considers whether the object was fixed for the better enjoyment of the land and building, or whether the object was fixed for the better enjoyment of the object itself.
Where an object has been fixed to the property for more effective use of the object itself, such as a basketball hoop attached to a garage wall, then it will not be considered a fixture. However if the object is fixed for the better enjoyment of the property, such as a basketball pole attached to an inbuilt concrete court, then it will be considered a fixture.
A few more examples of fixtures:
- Air-conditioning units installed in the property;
- A dishwasher;
- A timber house sitting on house stumps only by its own weight; and
- A water tank resting on the land only by its own weight.
A few more examples of objects not considered to be fixtures:
- Pre-fabricated transportable houses that can be moved without causing any damage to the land, despite being connected to sewerage and electricity;
- A chandelier; and
- Satellite dishes and antennas connected to the roof of the property.
To avoid any doubt over what objects will be included in the sale or purchase of a property it is best to ensure that these are listed on the Contract of Sale from the outset before it is signed by the parties.