What is land

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

‘all things permanently fastened to any thing attached to the earth’

Whether on or below the surface

Examples…?

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?

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ii. To determine the right of chargee banks over the ‘land’ charged to them , as security.IllustrationAmin 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 chattel

FIXTURE

a fixture is when an item is attached to the land and immovable. Therefore it shall form part of land

CHATTEL

a chattel is when an item even if attached to the land, it is removable. therefore t shall not form part of land

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.”

2 test – whether an item is a fixture or chattel?

1. The degree of annexation; and

2. 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.

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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.

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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 .

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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.

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Is it :- For the enhancement of the value of the

land? For better use of the item as a chattel itself?

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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

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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.

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But, if an air-conditioner unit is attached to the building, the value of land may increase;

prima facie it is a fixture

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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.

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.

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 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.

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.

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

Wiggin Teape 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.

..exceptions

1. Tenant;s fixtures

2. Ornamental or Domestic Fixture

3. Trade Fixture

4. Agricultural Fixture

5. Chargee Relationship

6. Proved Custom

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

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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,