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Exceptions to the Law of Fixtures, This circumstances are considered as…
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This circumstances are considered as EXCEPTIONS to the law of fixtures, namely
Tenant’s fixtures
Tenant’s Trade Fixture.
Where the tenant who for purpose of carrying out his business, brings in his items and attaches them to the rented place.
Example, Ali rents a restaurant and he installed ovens in the restaurant. Thus, ovens are chattel.
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the above fixtures which are brought in to the rented place of the tenant are subject to the following conditions:
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The fixtures must be removed prior to the expiry of the tenancy period failing which those fixtures will be property of the landlord.
Only the tenant’s trade, ornamental and domestic fixtures can be removed from the rented place and not others;
There is no substantial damage or injury caused to the landlord’s premise during the removal of the tenant’s fixtures.
Chargee relationship
Where the owner of the land charged his land to bank as a security for a loan and at the meantime, the owner entered into hire-purchase with another bank for the item attached to his land.
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In the event the owner defaulted in his monthly payment, the banks may enforce its right over the land together all things attached to the land.
Since there are two banks involved, both bank must provide disclaimer letter in order to protect its interest as a chargee.
For example, Ali charged his land to Maybank as security for a housing land. There is a bungalow house erected on the land.
Ali later decided to purchase air conditioner units to be installed and attached to the house. The air-conditioner units were purchased on a hire purchase with CIMB Bank. When Ali fails to pay the monthly instalment to Maybank, Maybank may enforce its right i.e. order for sale Ali’s land included all things attached to the land
Therefore, it is important for CIMB Bank gets consent or disclaimer letter from Maybank over the air conditioner units before installing it to the land in order to protect its interest over the units.
In such a case, all fixtures whether attached before or after the date of the charge (Maybank), once disclaimed by Maybank will not form part of the land and therefore falls under the exception to the general rule.
Proved custom
If the item is fall under proved custom as being removable even though attached to the land, then the item is a chattel.
Before any item is considered as falls under proved custom which entitles it to be removed, the following factors has to be fulfilled:
The custom is well accepted and practiced by the people of that particular place that such an item is commonly remove from one place to another;
There is an intention of the proprietor of the house that upon its removal, the same will be rebuilt at some other place.
cases
Kiah Bte Hanapiah v Som Bte Hanapiah [1953] 1 MLJ 82
Whether the house was a fixture and formed part of the realty? Court held that as part of the custom, the house is not part of the land and custom prevailed over English land law