Fixtures

MBEMax wiki article — paired with the Real Property question set on mbemax.com.

One-line summary

A fixture is personal property so attached to real property that it becomes part of the realty — with rules that differ for landlord-tenant, mortgagor-mortgagee, and vendor-vendee relationships, and with special rules for trade and agricultural fixtures.

Mnemonic

M-A-I-R — Manner of attachment, Adaptation to the realty, Intent of the party attaching, Relationship of parties.

Or picture a "MAIR" (as in a horse's mane) fastened to the property — the tests for whether it can be detached depend on how it's tied.

The rule

Whether an item is a fixture (part of the realty) or remains personalty depends on a balancing of factors, with intent usually controlling:

1. Manner of attachment — how firmly affixed; level of damage caused by removal.
2. Adaptation — whether specially designed or adapted for the realty.
3. Intent — objective intent of the party who affixed, judged by conduct and circumstances.
4. Relationship of parties — landlord-tenant, mortgagor-mortgagee, or vendor-vendee; each is treated differently.

Landlord-tenant fixtures

• Default rule. Tenant's trade fixtures — personalty annexed by tenant for business use — may be removed before end of term.
• Removal limitation. Tenant must remove before lease ends (or reasonable time after) and must repair damage caused by removal.
• Agricultural fixtures — modern rule allows removal; older common law treated as part of realty (exception for farming fixtures).
• Ornamental / domestic fixtures — tenant generally may remove if installation was for her own use and removal will not cause material damage.

Mortgagor-mortgagee fixtures

• General rule — fixtures affixed after mortgage are subject to the mortgage.
• Purchase-money security interest in fixtures (UCC § 9-334(e)) — UCC gives priority to perfected PMSI in fixtures filed within 20 days of attachment.
• Consent — mortgagor's agreement with third party providing financing for fixtures may preserve the financier's priority.

Vendor-vendee fixtures

• Rule — fixtures pass with land unless excluded in the contract.
• Items of arguable personalty (e.g., chandeliers, refrigerators in most states) — look to contract specifics.
• Items specifically designed for the home (custom cabinetry, built-ins) — fixtures.

Common fact patterns

• Furnaces, built-in appliances, custom shelving — typically fixtures.
• Chandeliers — jurisdictions split; often fixture.
• Refrigerators / ranges — modern default in most jurisdictions: personalty unless built in.
• Trees, crops — realty (fructus naturales); agricultural crops ready for harvest may be personalty (fructus industriales).

NCBE loves to test

• Trade fixtures exception. Tenants may remove trade fixtures even if deeply affixed, if removal doesn't cause material damage and is timely.
• UCC Article 9 overlay. Perfected PMSI in fixtures has priority over prior-recorded mortgage if filed within 20 days.
• Intent test. Objective intent of the affixer — judged by conduct + nature of attachment.
• Severance. Owner may sever fixtures before sale, converting them to personalty.
• Contract control. Vendor/vendee may contractually allocate any item.
• Annexation + adaptation + intent. All three matter; intent often decisive.
• Doctrine of constructive annexation. Items physically separate but essential to function (e.g., keys to doors) treated as fixtures.

Fast hypos

Hypo 1. Restaurant tenant installs commercial ovens bolted to the floor. Lease ends. Trade fixture — tenant may remove before lease ends; must repair damage.

Hypo 2. Owner installs custom bookshelves built into wall. Sells home. Bookshelves included? Fixtures — pass with realty unless excluded in contract.

Hypo 3. Refrigerator installed in new kitchen via simple cord and clip. Owner sells. Usually personalty in modern jurisdictions; contract may control.

Hypo 4. Mortgagor gets loan to buy new HVAC. Lender files UCC fixture filing within 20 days of installation. Bank has prior real estate mortgage. PMSI in fixture — § 9-334(e); HVAC lender has priority over prior-recorded real estate mortgage.

Hypo 5. Tenant installs ornamental garden statues on concrete bases. Leaves at end of term. Ornamental fixture — may remove if damage minimal; otherwise relinquished.

Case anchors

• Teaff v. Hewitt, 1 Ohio St. 511 (1853) — foundational fixture test (annexation + adaptation + intent).
• Strain v. Green, 172 P.2d 216 (Wash. 1946) — fixtures and sale of real property.
• Chalk & Vermillion Fine Arts v. Dempsey, 82 P.3d 1207 (Wash. Ct. App. 2004) — intent controls in close cases.
• In re Cliff's Ridge Skiing Corp., 123 B.R. 753 (Bankr. W.D. Mich. 1991) — trade fixtures vs. fixtures analysis.

See also

• Landlord–Tenant
• Easements
• Recording Acts
• Mortgages

Sources

Restatement (Third) of Property: Mortgages § 2.2; UCC § 9-334; Teaff v. Hewitt, 1 Ohio St. 511 (1853); Strain v. Green, 172 P.2d 216 (Wash. 1946); Chalk & Vermillion Fine Arts v. Dempsey, 82 P.3d 1207 (Wash. Ct. App. 2004).