Brendan Maier, Partner, CBP Lawyers
Peter Moran, Director, Donaldson Trumble Legal (Vic)
Luckbir Singh, Partner, MacDonnells Law (Qld)
Gary Thomas, Partner, Tottle Partners (WA)
Philip Page, Partner, Mellor Olsson (SA)
Tim Tierney, Principal, Tierney Law (Tas)
Currently updated by Lyn Bennett, Consultant, Minter Ellison (NT)
Originally authored by Leon Loganathan, Managing Partner, Ward Keller Lawyers (NT)
Christine Murray, Partner, Meyer Vandenberg Lawyers (ACT)
Nature and scope of fixtures
Fixtures are tangible personal property which are annexed to land. See Personal property. An individual who purchases an interest in land is entitled to the land and all fixtures which are attached to the land subject to provision in the contract of sale and any subsequent agreement between the vendor and the purchaser.
In some circumstances, it may be difficult to identify whether an object would be classed as a fixture or a chattel. For information on chattels, see Types of personal property. For example, when a vendor sells their property, it may not be apparent whether curtains, tapestries or boundary fences transfer to the purchaser. To determine whether items are fixtures or merely chattels, courts have traditionally examined two main elements:
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the degree of annexation; and
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the object of annexation, ie, the intention of the owner of the object.
In practice, the determination of whether objects are fixtures or chattels is relevant, but not limited, to the following relationships:
See Nature and scope of fixtures.
Removal of fixtures
Disputes relating to the installation and removal of fixtures are common between landlord and tenant. In practice, legislation specifies that tenants cannot install fixtures or make any other attachments to leased premises without the consent of the landlord. Under the doctrine of waste, tenants may be liable for damages which result from actions taken which destroy or cause lasting damage to the leased premises. This can include acts performed without consent of the landlord for the installation or removal of fixtures.
In all state and territory jurisdictions, legislation provides that fixtures may be removed from the land in certain circumstances. This gives rise to a tenant's rights to remove certain fixtures they attached to the land during their tenancy. Before the tenancy terminates, tenants are entitled to remove fixtures which are considered:
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trade;
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ornamental; or
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domestic.
See Removal of fixtures.
Sale and purchase of property
By contrast to fixtures, chattels are personal property which retain their independent status. Unlike fixtures, chattels are non-permanent improvements to property which do not pass with the conveyance of land.
Prior to the sale of property, fixtures severed from the land can be sold as personal property. Issues can arise when a landowner intends to retain title to their property but sell their fixtures to another party.
See Sale and purchase of property.