Irac Question on Real Property
ISSUE:
Are the park homes at Bumpinyallup Caravan Park classified as Fixtures or Fittings?
RULES:
Fixtures are referred to by statue law as real property which is regulated by State and Territory Legislation. “Fixtures are something that has been or is or intended to be permanently attached to land to enhance the land in some way.” Nikolas James, Business Law, 2012 (1st) Edition (p. 444). Fittings are objects attached to land or buildings that are not Fixtures. The Case Law relevant to fixtures and fittings is the case of Australian Provincial Assurance Co Ltd Vs Coroneo (1938) 30 SR (NSW) 700. The case involved the selling of a theatre and the court was to decide which assets were fixtures and which were fittings. The court decided that a switchboard & projector were permanently attached and therefore fixtures and that chairs bolted to the ground could be moved around and where therefore fittings.
APPLY:
When assessing if an asset is a fixture the court considers the following three tests as detailed in the text Nikolas James, Business Law, 2012 (1st) Edition;
- The intention of the person who attached the object
- The ease or difficulty to remove the object
And
- Whether substantial damage will be caused by the objects removal.
These tests can be applied to the issue at Bumpinyallup Caravan Park.
The park homes intended use was to provide short term accommodation for travellers staying at the caravan park. It can be assumed from the facts provided that the park owners intended on moving the homes around as they did not wire up specific power outlets as the homes could just use the same power outlets supplied at the caravan sites. The homes also do not have a complex draining system installed. There is only a sink in the homes and no toilet or shower. Indicating that only a small amount of water will be going through the plastic pipes and the water is just going to a nearby drain. If the Park Homes were intended as long term fixings it would be
Are the park homes at Bumpinyallup Caravan Park classified as Fixtures or Fittings?
RULES:
Fixtures are referred to by statue law as real property which is regulated by State and Territory Legislation. “Fixtures are something that has been or is or intended to be permanently attached to land to enhance the land in some way.” Nikolas James, Business Law, 2012 (1st) Edition (p. 444). Fittings are objects attached to land or buildings that are not Fixtures. The Case Law relevant to fixtures and fittings is the case of Australian Provincial Assurance Co Ltd Vs Coroneo (1938) 30 SR (NSW) 700. The case involved the selling of a theatre and the court was to decide which assets were fixtures and which were fittings. The court decided that a switchboard & projector were permanently attached and therefore fixtures and that chairs bolted to the ground could be moved around and where therefore fittings.
APPLY:
When assessing if an asset is a fixture the court considers the following three tests as detailed in the text Nikolas James, Business Law, 2012 (1st) Edition;
- The intention of the person who attached the object
- The ease or difficulty to remove the object
And
- Whether substantial damage will be caused by the objects removal.
These tests can be applied to the issue at Bumpinyallup Caravan Park.
The park homes intended use was to provide short term accommodation for travellers staying at the caravan park. It can be assumed from the facts provided that the park owners intended on moving the homes around as they did not wire up specific power outlets as the homes could just use the same power outlets supplied at the caravan sites. The homes also do not have a complex draining system installed. There is only a sink in the homes and no toilet or shower. Indicating that only a small amount of water will be going through the plastic pipes and the water is just going to a nearby drain. If the Park Homes were intended as long term fixings it would be
References: James, N. (2010) Business Law (1st Edition pp. 444 -445). Australia. John & Wiley Sons Australia Ltd.