Fixtures and the Personal Property Securities Act: maintaining the status quo

Introduction

The law regulating the priorities of interests in fixtures is complex and. in many areas, uncertain.¹ The law has developed in an inconsistent fashion largely because each case is decided on its facts.²

Nowhere does the application of the law of fixtures cause more difficulties than where a real property mortgagee and a fixture financier³ both claim rights in the same fixture. That is because the common law provides that a chattel loses its identity upon becoming affixed to land and becomes subject to any interest in the land.⁴ The harsh application of the common law rules means that it is nearly impossible for those with an interest in chattels to protect their interest should the chattels become affixed to land. As a result, there have been numerous calls for reform.⁵