Fixtures, fittings and chattels – what is the difference and why do they matter?

What are Fixtures and Fittings in property?

The term “fixtures and fittings” is often used when buying, selling or leasing property and knowing the difference is vitally important so as to not cause contractual issues during a sale or when returning a property to a Landlord at the end of a Lease and for tax purposes.

Where there are items on the land, these will either be classed as fixtures or fittings (chattels). However, it is not always easy to determine whether an item is a fixture, fitting or part of the land itself.

Why do they matter? Avoiding a property dispute

To avoid disputes, parties should take care in clarifying those items that they are to remove in a sale as early as possible to make clear what will be left and what is included in the purchase price.

Understanding the difference between fixtures and chattels is important when it comes to repairing obligations in a lease as, a commercial lease covenant for the Tenant to keep the Landlord’s fixtures and fittings in good repair and condition means the tenant may have to spend money on maintaining, and even replacing, them.

Issues can also arise where a tenant is exercising a break clause in their lease, if the Tenant doesn’t remove all their items they may not have complied with the conditions of their break clause and will be stuck in their lease and/or face a dispute with their Landlord.

So, what is a fixture or a chattel?

Fixtures

The general presumption is an item “attached” to the land or a building on the land, is a fixture and, therefore, part of the land or building itself. However, this will depend on:

• The degree to which an item is annexed/affixed to the premises – how firmly is it attached? Would it be easy to remove the item without destroying it entirely?

• Why it was annexed – was this done for a temporary reason or a permanent one? Was the item attached to enhance the land or building (usually making it a fixture), or for the benefit of the occupier of the land or building as opposed to for the benefit of the land or building itself (usually making it a chattel)?

Examples of fixtures include light fittings, radiators, integrated appliances, sinks and plug sockets.

Fittings and Chattels

Chattels are anything that is not classed as a fixture – these are items which may be attached to the property but can be moved and are not treated as being part of the land. They are also referred to as “contents” and that’s a more helpful way to think of them. Although the phrase “fixtures and fittings” is commonly used, strictly speaking, the word “fittings” has no legal meaning and “chattel” is used instead. Examples of chattels or “fittings” are shelves, pictures and free-standing furniture.

Part and parcel of the land itself

Items which have become an integral part of the building and are completely part of the land, or part of the structure are considered to be part of the actual land itself Examples of this are doors or windows etc.

How does this work in practice?

There have been lots of cases on this issue. Some of the more interesting decisions made by the courts have been as follows:

• If an item is securely fixed to the property (for example, by screws or nails), it is presumed to be annexed to the property and you have to consider the reason it was annexed.

• Items not fixed to the property/land but rest on their own weight are presumed to be chattels. However, if the item in question is integral, it may be a fixture – both the item and property/land will need to be looked at to determine which category the item fits into. The following have all been held to be chattels: paintings, fitted carpets, a bottle rack fastened by a screw to two wall hooks, and transformers weighing in the region of 100 tonnes (that rested on their own weight), advertising boards, alarm system, lifts and video door systems.

• Skylights, locks, doors, bars and key bolts, have all been held to be part and parcel of the land.

What action needs to be taken?

Our expert property lawyers will always discuss this with you to make sure that the documentation clearly sets out what is included in any sale, purchase, or tenancy of a property. We are happy to advise on you on whether an item is a fixture, fitting or chattel.

Rebecca Beswick, Head of Commercial Property, Solicitor
Lawson West Solicitors, Leicester

 

This article is a brief introduction to chattels, fixtures and fittings and is not intended to be legal advice and cannot be relied upon or applied to any set of circumstances. For further guidance, please contact Lawson West Solicitors Limited.

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