Fixture (property law)

A classic example of a fixture is a building, which, in the absence of language to the contrary in a contract of sale, is considered part of the land itself and not a separate piece of property.

Generally speaking, the test for deciding whether an article is a fixture or a chattel turns on the purpose of attachment.

In this case, the characterization of the home as chattel or realty will depend on how permanently it is attached, such as whether the trailer has a foundation.

For example, in the province of Ontario, Canada, mortgages against real property must be registered in the county or region's land titles office.

However, mortgages against chattels must be registered in the province-wide registry set up under the Personal Property Security Act.

For example, most mortgages contain a clause that forbids the borrower from removing or demolishing fixtures on the property, which would lower the value of the security.

In one case in Canada, a provincial government argued that a huge earth dam was a chattel, as it was only held in place by gravity and not by any type of affixation (the claim was rejected).

For example, business signage, display counters, store shelves, liquor bars, and machining equipment are often firmly, if not almost permanently, attached to the building or land.

In the absence of agreement between the parties,[4][5] the doctrine of fixtures, subject to statute,[6] operates to resolve contests concerning title to objects.

[17][18][19] Semble, it is a mixed question of fact and law,[7][20] to be determined objectively,[5][21][22][23] the subjective intention being a consideration.

Each case depends upon its own facts,[30] however a guiding test,[31] is whether a chattel has been fixed with the intention that it shall remain in position 'permanently or for an indefinite or substantial period',[17] or only for some temporary purpose.