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Law Relating to transfer of fixtures, Cheat Sheet of Property Law

Dr. Ram Manohar Lohia National Law UniversityProperty Law

The law relating to fixtures governs the classification of items attached to land or buildings and determines whether they are considered part of the real property or remain personal property. Under this legal framework, an item becomes a fixture when it is permanently affixed to the land or a structure in a way that it cannot be removed without damage or significant alteration. The key factors in determining whether something is a fixture include the degree of attachment, the purpose of the installation, and the intention of the person who placed the item. Fixtures are typically sold with the property, while items that retain their status as personal property, such as furniture or movable equipment, can be removed by the owner. Courts apply these principles to resolve disputes, often focusing on the intention behind the attachment and the nature of the item.

Typology: Cheat Sheet

2023/2024

Available from 12/03/2024

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LAW RELATING TO TRANSFER OF FIXTURES
NOTE: ANSWER FOR DOCTRINE OF FIXTURES IS DIFFERENT FROM, LAW RELATING TO
FIXTURES UNDER TPA
- The Transfer of Property Act, 1882, governs the transfer of property in India. The term
"fixtures" under property law refers to items that were once movable (goods) but
have become attached to the land or building in such a way that they form part of
the real property.
- The law relating to the transfer of fixtures under the Transfer of Property Act is rooted
in two key concepts:
1. What constitutes a "fixture".
2. The transfer of fixtures along with the transfer of immovable property.
Definition of "Fixtures"
- Fixtures are generally defined as items that were originally movable property but, by
being aKixed or attached to land or buildings, have become part of the real property.
For example, if a person installs a central heating system in a house, that heating
system becomes a fixture of the house, as it is permanently aKixed to the building.
- The legal distinction between movable and immovable property is important
because the Transfer of Property Act primarily deals with immovable property, and
fixtures, once attached, are considered part of the immovable property.
The Transfer of Fixtures under the Transfer of Property Act
- Section 3 of the Transfer of Property Act defines “immovable property” to include
land, benefits to arise out of land, and things attached to the earth.
- Fixtures that are attached to land or buildings are transferred with the transfer of the
land or the building unless a contrary intention is expressed.
- This is governed by Section 8 of the Transfer of Property Act, which states that the
transfer of property is not limited to the transfer of the land or building, but extends
to things that are attached to it.
- Section 8 of the Transfer of Property Act, 1882: "Where, on a transfer of property, the
transferor does not intend to exclude the things attached to it, they pass with the
property."
Thus, when a property is transferred, fixtures pass with it unless a contrary intention is
expressed by the parties involved.
Decided Cases and Judicial Interpretation
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LAW RELATING TO TRANSFER OF FIXTURES

NOTE: ANSWER FOR DOCTRINE OF FIXTURES IS DIFFERENT FROM, LAW RELATING TO

FIXTURES UNDER TPA

  • The Transfer of Property Act, 1882, governs the transfer of property in India. The term "fixtures" under property law refers to items that were once movable (goods) but have become attached to the land or building in such a way that they form part of the real property.
  • The law relating to the transfer of fixtures under the Transfer of Property Act is rooted in two key concepts:
  1. What constitutes a "fixture".
  2. The transfer of fixtures along with the transfer of immovable property. Definition of "Fixtures"
  • Fixtures are generally defined as items that were originally movable property but, by being aKixed or attached to land or buildings, have become part of the real property. For example, if a person installs a central heating system in a house, that heating system becomes a fixture of the house, as it is permanently aKixed to the building.
  • The legal distinction between movable and immovable property is important because the Transfer of Property Act primarily deals with immovable property, and fixtures, once attached, are considered part of the immovable property. The Transfer of Fixtures under the Transfer of Property Act
  • Section 3 of the Transfer of Property Act defines “immovable property” to include land, benefits to arise out of land, and things attached to the earth.
  • Fixtures that are attached to land or buildings are transferred with the transfer of the land or the building unless a contrary intention is expressed.
  • This is governed by Section 8 of the Transfer of Property Act, which states that the transfer of property is not limited to the transfer of the land or building, but extends to things that are attached to it.
  • Section 8 of the Transfer of Property Act, 1882: "Where, on a transfer of property, the transferor does not intend to exclude the things attached to it, they pass with the property." Thus, when a property is transferred, fixtures pass with it unless a contrary intention is expressed by the parties involved. Decided Cases and Judicial Interpretation

There have been several judicial decisions which help clarify the law regarding the transfer of fixtures. Here are some key cases:

  1. Elwes v. Maw (1853) 3 E & B 24: This English case established the principle that an item attached to land becomes a fixture and, therefore, part of the real property. In this case, a timber frame that had been fixed to the land was held to be part of the land when the property was transferred.
  2. K.S. Varghese v. The C.C.I. Ltd. (1950): In this case, the Supreme Court of India clarified that in order for an object to be considered a fixture, there must be a clear intention that it is meant to be permanently attached to the land or building. A temporary attachment, like a piece of machinery that can be easily removed without damage, would not be considered a fixture.
  3. Malkiat Singh v. Union of India (1997): The Supreme Court in this case ruled that a fixture, once attached to the property, cannot be separated from the land. Even if an item such as machinery was originally movable, if it was aKixed to a building or land, it would pass with the sale of the immovable property unless explicitly excluded in the sale agreement.
  4. Rameshwar v. Munni Devi (1985): This case dealt with the issue of distinguishing between movable and immovable property. The court held that the removal of a fixture (such as a water tank aKixed to the roof of a house) without destroying the property could still be considered as part of the land, depending on the circumstances. Key Principles Regarding Transfer of Fixtures
    • Fixtures pass with the land: Unless specifically excluded by the terms of the agreement or the intention of the parties, fixtures attached to the land or building will pass with the transfer of the property.
    • Intention is important: The intention of the parties is crucial in determining whether an item is a fixture or not. If the parties intended for the item to be a fixture (i.e., permanently attached to the land), it will be treated as such.
    • Nature of attachment: The manner in which an item is aKixed to the land or building plays a role in determining whether it is a fixture. If the item is aKixed with the intention of permanent attachment, it will typically be treated as a fixture.
    • Severability: Some items, although attached, may be severed from the land without damaging the property. In such cases, the item may remain a movable property and will not be transferred along with the land.