Keenan and Riches’BUSINESS LAW

price. Fittings are not and can be removed by the seller
in the absence of an agreement to the contrary.
The distinction is also important to lenders on mort-
gages since if they take possession of a property because
of the borrower’s default, the mortgage will give the lender
a charge over fixtures but not fittings in the premises.
The matter came before the High Court in TSB Bank
plcv Botham(1995) when the lending bank, which had
taken possession of the borrower’s flat, claimed that
certain items were fixtures and as a result were subject to
its mortgage and could be sold to the new flat buyer.
The judge said that whether a chattel had become a
fixture depended first on the object and purpose for
which it had been fixed. If the object and purpose was
to make a permanent and substantial improvement to
the land or buildings, the chattel would be regarded as
a fixture. If it was attached so that it could be better
enjoyed for itself, it would be a fitting, on the lines of the
tapestry in Leigh. The judges also thought that if signific-
ant damage would be done to the premises on removal
the chattel would be more likely to be a fixture. He then
applied the principles to the items in dispute as follows:

■fitted carpets – fixtures;
■light fittings attached to the property – fixtures;
■mock coal gas fire piped in – fixture;

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Figure 15.1The classification of property

■curtains, blinds and pelmets specifically designed for

the particular windows – fixtures;

■towel rails, soap fittings, tap fittings and shower heads

• all fixtures;
  ■white goods fitted into standardsized holes and piped
  or wired in and aligned with and abutted on to each
  other so as to be part of the overall fitted kitchen – all
  fixtures.
  In practice, to avoid misunderstanding, the Law
  Society’s National Protocol ‘Transaction’ for the sale of
  residential property requires a seller to complete a fix-
  tures form detailing those fixtures that are included in
  the sale and those which are excluded. It is equally sens-
  ible and usual in sales of commercial property to follow
  a similar course in order to avoid disputes.

The lease

A lease of land, e.g. office premises, is obviously an

interest in land (or realty) but for historical reasons it is

regarded as personal property and not real property.

This distinction has lost much of its importance in law,

though still today if a person, T, were to leave by his will

‘all my personal property to P and all my real property

to R’, P would get any leases which T had when he died.

Pure personalty and chattels real

The word personalty is another name for personal prop-

erty. The word chattel is also used to describe personal

property.

Although leaseholds are regarded as personalty, they

are over land and result in a person having use of land,

and so they are referred to as chattels real to distinguish

them from pure personalty, such as a watch or a foun-

tain pen.

Pure personalty – choses in

possession and choses in action

Things such as jewellery and furniture which are tangible

objects and have not only a money value but can also be