WHAT IS LAND ? LAW 504 Prepared by: Pn Hamsiah Omar
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 …?
The 2nd limb of item (d), land includes ‘allthings permanently fastened to any thing attached to the earth’ Whether on or below the surface Examples…?
Why is the importance of having theword ‘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?
…continueii. 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.
Difference between fixture and chattelFIXTURE 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
General rule regarding law of fixture isstated 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.”
2 test – whether an item is a fixture orchattel?1. The degree of annexation; and2. The purpose of annexation
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.
…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.
…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 .
…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.
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.
…continueIs it :- For the enhancement of the value of the land? For better use of the item as a chattel itself?
…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
…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.
…continue But,if an air-conditioner unit is attached to the building, the value of land may increase; prima facie it is a fixture
…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.
THINKWhat do you think of the following items? are theyfixtures or chattels. kitchen cabinet Ceiling fan Lightings Dining table Wooden door Rock garden Automatic gate.
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.
Shell Co. of Federated of Malaya v.Commissioner of Federal Capital ofK.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.
Socfin Ltd. V. Chairman Klang TownCouncil TheTown 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.
Material Trading Pte Ltd. V. DBSFinance 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
WigginTeape v. Bahagia Trading Vandeville Electric Cinema Ltd. V. Muriset.
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.
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
…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,