Although it is important to make a distinction between fixtures and fittings, doing so can be difficult. The following article explains the influence of this distinction in determining its ownership.
Fixtures are considered to be a part of the land and the buyer can expect that they shall belong to him on completion of the deal. A seller can however, retain the right to remove certain specified items. A buyer pays for the value of these fixtures and these are a part of the property that is purchased. For an item to be considered as a fixture, it is important that there exists some degree of attachment to the land.
Fittings do not form a part of the land and hence, not included when calculating the purchase price, unless the seller expressly agrees to include them. It is upon the intention of the parties to the sale to include fitting as a part of the sale price. Sometimes, parties may also agree on the fittings that are to be left behind and those that shall be carried away by the seller. They may also decide on including the cost of these fittings in the sale price of the property.
Difficulty of distinguishing between fixtures and fittings
A two step process has been evolved to make it easier for people to determine if an object is to be classified as a fixture or a fitting.
It is sometimes very difficult to distinguish between a fixture and a fitting. It is for this purpose that a two step process is evolved. The process looks at the degree by which the object is attached to the land and the purpose for which it is attached. Although, this seems to be a pretty straightforward process, its practical application is anything but that, and often at the mercy of human living arrangements. There have been several instances when, objects such as green houses and garden ornaments have been considered fixtures and in some instances, they also have been held as fittings.
Need for certainty in contract
Disputes regarding an object being considered as a fixture or a fitting can be avoided if parties to the contract discuss thoroughly and include the same in the contract.
The problem of considering an object to a fixture or a fitting should be discussed during the conveyancing process. A conveyancing solicitor acting for the seller should ask his client about the items that shall be removed and the items that shall remain in the property. He should also seek clear information if the seller would like to add the price of these objects to the sale price, and if so, determine their price. The same should be communicated to the parties concerned to avoid future disputes.
A contract can be expressly made to deal with
- Fixtures that the seller intends to remove on or before completion of the contract
- Fittings that may remain at the property,
- The price (if applicable) that the buyers need to pay for the fittings
- Inclusion of a condition that the title to the fittings shall not be completed until completion. In the absence of such a condition, S18 of the Sale of Goods Act 1979 shall be applicable. Thus, the title to the fittings shall be applicable on exchange of contract.
- A warranty that the fittings are free of incumbrances like hire-purchase agreement. If no such warranty exists, a special condition laid down under S12 of the Sale of Goods Act 1979 shall be applicable.
Apportionment of purchase price
The sale of chattels does not attract an SDLT, and the value, if added in the purchase price can be deducted from the total purchase price.
Fittings and contents form
A conveyancing solicitor working on behalf of the seller should seek information from his client about fixtures and fittings through the Fixtures and Contents Form. The completed F&C should be then sent to the buyer’s conveyancing solicitor at the time of sending the draft contract.
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