What Does A Weak Link Have To Do With Defining A Real Property Fixture? Read On.

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 Last week, we described the practical law of (real property) fixtures. We pointed to a recent case decided by the Missouri Court of Appeals, Herron v. Barnard, 390 S.W.3d 901 (2013). You could be removed can see that decision by clicking HERE. And, we promised that, this week, Ruminations would apply the “law” to the “facts” of that case. Let us know if we now deliver on that promise.

To remind you, here’s the background. A tenant with a two year (office) lease had the right to make extensive changes to the leased space. By way of example, the tenant, an architectural firm, was allowed to remove partitions, relocate plumbing and other utility lines, and even relocate the entry door. More important for the purpose of today’s blog posting, the lease allowed it to do the following. Install a sink; install cabinetry with a waste receptacle and storage bin; add appliances; and, install kitchenette shelving. That wasn’t all. The tenant also arranged for a custom-made glass door and matching transom, lots of light fixtures and bulbs, a “picture-hanging” mechanism, filing cabinets, and a security system. [Read more…]

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At Least We Know They Aren’t Dental Fixtures, But What Kind Of Fixtures Are They?

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One of the most common questions we hear is: “Can you explain to me what is meant by a ‘fixture’”? The follow-up questions focus on variations of: “Can I take it with me” and “Who owns it”? The implicated issues deal with repairs, damage, and insurance. We’ve gone down this path before (see HERE for an example), and thought it would be timely to travel a little farther than we did with our earlier efforts. Fortunately, today, Ruminations will be able to use the recent Missouri Court of Appeals decision in Herron v. Barnard, 390 S.W.3d 901 (2013) (see it HERE) as a road map. Here’s what that case was about

A tenant with a two year (office) lease had the right to make extensive changes to the leased space. By way of example, the tenant, an architectural firm, was allowed to remove partitions, relocate plumbing and other utility lines, and even relocate the entry door. More important for the purpose of today’s blog posting, the lease allowed it to do the following. Install a sink; install cabinetry with a waste receptacle and storage bin; add appliances; and, install kitchenette shelving. That wasn’t all. The tenant also arranged for a custom-made glass door and matching transom, lots of light fixtures and bulbs, a “picture-hanging” mechanism, filing cabinets, and a security system. [Read more…]

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When I use the word, ‘Fixture,’ “It Means Just What I Choose It To Mean — Neither More Nor Less.” [Humpty Dumpty on Retail Leasing]

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What do we mean when we say something is a “fixture”? The most accurate answer is: “Who knows?” One reason for such uncertainty is that the answer depends on: (a) why you are asking; (b) who you are asking; (c) when you asked the question; and (d) where you were standing when you asked the question. The real reason is that the answer depends on the intent of the parties for whom the answer would be important.

What is not in doubt is that the question’s answer is important, for both leases and mortgages (and for taxation and some other kinds of issues). [Read more…]

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