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Chattel or Fixture?

Chattel or Fixture?

Q.  How do I know whether the item is a fixture or chattel?

A. The difference between a fixture and a chattel depends on whether the item is affixed to the land or property. If the item is affixed to the land or property then ordinarily the item will be regarded as a fixture.  If the item if freestanding and rests on its own weight then ordinarily the item is a chattel. When determining whether the item is a fixture or not consider the degree of fixation (and how much damage will be caused by removing it) and the intention relating to the fixation (was the intention that the item remain in position permanently or for a substantial period), you may also consider whether it is common practice for the item to be removed.  

TIP – It is always important to clearly note in the Contract of Sale any included chattels or excluded fixtures thereby preventing the chance of any disagreements arising after the Contract has been signed.