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MortgageBroker mbabc.ca fall 2014 | 33
reasonably concluded that it was intended
to remain in place for its useful lifetime.
e court found the purpose of attaching
the equipment to the pulp mill was for the
better use of the pulp mill and not the better
use of the equipment. Indeed, no piece of
the equipment was useful on its own except
as part of the mill's manufacturing process.
As the pieces of equipment were fixtures,
the PTT was – ouch! – $4,554,510.
In contrast, in another case, a large
piece of equipment that was attached to
the land by four bolts and had a history of
being moved remained a chattel.
Some lessons for the broker
e characterization of chattels and fixtures
is to be determined not by the parties to a
sale transaction but in accordance with the
law of chattels and fixtures.
• Determining whether chattels included
in a transaction are indeed chattels or have
become fixtures can be very difficult.
• Being wrong in deciding whether chattels
included in a transaction are indeed
chattels or have become fixtures can be
expensive for the client and possibly make
the broker liable for damages if the advice
was given negligently.
• Except in cases where there is absolutely
no issue (e.g., a car parked on the property
is included in the purchase), offer no
opinion. A safer course of action, for both
the client and the broker, is for the broker
to advise in writing that no advice is being
offered on the issue and it is recommended
that the client obtain legal advice.
•
