1. WHAT IS LAND ?
LAW 504
Prepared by:
Pn Hamsiah Omar
2. What is land ?
Definition of “land” – Section 5 of NLC
Look at item (d) – 1st limb.
Land includes ‘ all things attached to the
earth’
examples …?
3. The 2nd limb of item (d), land includes
‘all things permanently fastened to any thing
attached to the earth’
Whether on or below the surface
Examples…?
4. Why is the importance of having the
word ‘land ‘ defined in the Code?
i. To determine the right of a purchaser on certain
items in a sale and purchase transaction of a piece
of land.
Illustration
Amin is a registered proprietor of a piece of land
erected thereon a bungalow house. Amin (vendor)
wishes to sell the land to Abu (purchaser). Who
has the right over some items such as air
conditioner units, ceiling fans and lighting?
5. …continue
i. To determine the right of chargee banks over the ‘land’
charged to them , as security.
Illustration
Amin is the registered owner of a piece of land. Amin needs
money and applies for loan from A Bank. As security for the
loan applied, he charges the land to the chargee bank.(in the
event Amin default payment, the bank can sell the land)
who has the right over all the item attached to the house on
the land before the sale? The bank challenge that all items
attached to the house form part of the land and cannot be
removed.
6. Difference between fixture and chattel
FIXTURE CHATTEL
a fixture is when an a chattel is when an
item is attached to the item even if attached
land and immovable. to the land, it is
Therefore it shall form removable. therefore t
part of land shall not form part of
land
7. General rule regarding law of fixture is
stated in Holland v. Hodgson
Neither fixture nor chattel is defined in our
Code. The application of the English Law of
Fixture in Malaysia is decided in the case of
Goh Chong Hin v. Consolidated Malay
Rubber (1924) 5 FMSLR 86, by Sproule J,
“that English law of fixtues is applicable
and reffered to in Malaysia.”
8. 2 test – whether an item is a fixture or
chattel?
2. The degree of annexation; and
3. The purpose of annexation
9. 1. Degree of annexation
To what extent an item is affixed or attached
to the land. It may be strongly or slightly
attached or it may be resting by its own
weight to the land. A machinery which is
affixed with nuts and bolts to the floor is
prima facie a fixture. An item which is resting
on its own weight is said to be a chattel. Eg,
a picture which is nailed to the wall is
considered as chattel.
10. …continue
To what extent an injury will be caused to
the item upon its removal. For example, to
remove a built-in-cabinet will cause damage
to the item upon its removal and thus prima
facie it to be a fixture.
11. …continue
As a guideline to the degree of annexation,
we can presume that the stronger an item is
attached to the land, the more likely the item
is considered as fixture and the more
damage or injury is done to the item ipon its
removal, the more likely it is considered as
part of land .
12. …continue
However, this test on degree of annexation
alone is insufficient when determining an
item is a fixture or chattel. We have to go
further to discuss the next test, that is,
purpose of annexation.
13. 2. PURPOSE OF ANNEXATION
This is important ti ascertain before we come
to a conclusion that an item is a fixture or
chattel. We may ask the reason why and the
intention of the person who annexed or
attached the item to the land.
14. …continue
Is it :-
For the enhancement of the value of the
land?
For better use of the item as a chattel itself?
15. …continue
If the purpose of annexation of the item is for
the enhancement of the value of the land,
then that item eased/stopped to be a chattel.
It will be a fixture and thus form part of the
land, eg, an automatic gate, statutes or rock
garden arranged in a garden
16. …continue
Conversely, painting which are tacked and
nailed to the wall of a building are intended to
be for the better enjoyment of the chattel
themselves and not for a better improvement
in the value of the land
This means, whether the paintings are there,
attached to the building or not, it will not
affect the value of land.
17. …continue
But, if an air-conditioner unit is attached to
the building, the value of land may increase;
prima facie it is a fixture
18. …continue
What if the purpose of attachment of the land is for
better use of the item as chattel itself ?
For instance, the purpose of having a machine screwed
and attached to the land is to make if firm to the floor
or to avoid it moving about. If the machine is not
screwed to the floor, it cannot be properly used. It
does not relate to improving the value of the land.
Therefore , it is chattel and does not form part of land.
19. THINK
What do you think of the following items? are they
fixtures or chattels.
kitchen cabinet
Ceiling fan
Lightings
Dining table
Wooden door
Rock garden
Automatic gate.
20. Cases
Goh Chong Hin’s case, the issue was
whether an item consists of machinery
affixed by the proprietor to the land is a
fixture. It was decided that the machinery
which was affixed to the earth by bolts and
nuts, became a fixture and form part of land.
21. Shell Co. of Federated of Malaya v.
Commissioner of Federal Capital of
K.L
Main issue that arise was whether the
underground storage petroleum tank form
part of the land and therefore rateable
(annual payment to be made to the
Commissioner). It was held that the tanks
formed part of the land as they were placed
underground with the intention to remain as
long as the building erected on the filling
station. Therefore, it was rateable.
22. Socfin Ltd. V. Chairman Klang Town
Council
The Town Council in determining the annual
value of Socfin’s Holding for rating, took into
account the bulk storage tanks standing
thereon. It was held the that the storage
tanks were annexed to the land has
enhanced the value of the holdings on which
they stood. They formed part of it and
accordingly rateable.
23. Material Trading Pte Ltd. V. DBS
Finance Ltd
M, were the lessees of 2 plots of land. D was holding
the land as mortgagee. There were 2 ware houses
used for the storage of hardware materials. Three
overhead cranes were installed in the warehouses.
The issue in the present case were whether these
cranes were fixture or chattel.
It was held that the cranes were intended to remain
there permanently to serve the warehouse,i.e to
remove heavy material and articles within the
warehouse. The overhead cranes were fixtures
24. Wiggin Teape v. Bahagia Trading
Vandeville Electric Cinema Ltd. V. Muriset.
25. The exception
Means that even though the items attached
and affixed to the land are fixtures, under
certain circumstances they can be
considered as chattels are removable.
The following circumstances illustrate fixtures
are removable and do not form part of the
land.
27. Conclusion
In order to determine whether a particular
item is ‘land’ or otherwise, we must classify
the status of the item either falls under a
fixture or chattel.
The general rule to the law of fixture is that
all things attached to the land are fixtures
and thus form part of the land
28. …continue
Holland v. Hodgson ‘s case laid down two (2)
test to be proven in order to prove the item
as either a fixture or a chattel .
Nonetheless, if we can prove that the item
falls under trade fixtures, ornamental
fixtures, agricultural fixtures, tenant’s fixtures
or if there is agreement by parties involved
and proved custom, then the item ceases to
be a fixture and it is removable,
