LAND LAW

Initial steps/thoughts

• Consider who you are advising (you need to advise on the strength of argument in their favour as well as show a realistic appreciation of the counter-arguments)
• Consider the type of property involved (could there be potential for an architectural scheme to upgrade fixtures to fittings?)

Introduction

Identify the subject area – The law on fixtures and fittings.

1. Define land –

Law of Property Act 1925 s205 (1) (ix): Includes buildings, parts of buildings and tangible things forming part of land (corporeal hereditaments) … Make the connection between parts of buildings/corporeal hereditaments and fixtures.

2. Define fixture –

• A material object that is usually (but not necessarily) attached to the land and is considered to be part of the land
• It vests automatically in the current owner of the land.
• It is said to “run with the land”

3. Define fitting –

• A chattel that is usually (but not necessarily) unattached to the land
• It never loses its character as mere personalty
• It does not ‘run with the land’

4. Explain the relevance of the distinction –

• Sale of land – s. 62 LPA 1925: Fixtures at the property on exchange of contracts pass on completion, unless they are specifically included (but see Taylor v Hamer [2003] 1 P&CR DG6 – buyer inspected and saw flagstones (fixtures), flagstones were removed by the seller before exchange and misleading replies to enquiries were given. Held: The relevant fixtures should have been transferred). Make the point that an express agreement in the contract as to (1) any fixtures that are excluded or (2) fittings that are included will override the general law.

• Lease of land – Distinguishing between Landlord’s fixtures from Tenant’s fixtures

• Repossession of land by a mortgagee – Fixtures pass to the mortgagee

• Taxation of land – Stamp Duty Land Tax (in England) and Land Transaction Tax (in Wales) are paid by a buyer on real property (including fixtures)

5. Brief discussion of the essence of the two tests in Holland v Hodgson (1872) LR 7 CP (save quotations (‘judicial nuggets’) for your analysis and application)

The Degree of Annexation Test – Any annexation raises a rebuttable presumption that the thing is a fixture.

The Purpose of Annexation Test – Why is the article attached to the land?

• Was the purpose to increase the value or enjoyment of the property? If yes, it is likely to be a fixture.

• Was the purpose for the better enjoyment of the item – i.e. is the land merely a place for the enjoyment of the chattel? If yes, it is likely to be a fitting

Main body

Analysis and application for each item – Refer to both tests each time and a good range of cases/judicial dicta.

Conclusion

Draw your arguments together and advise the client.