Legal Definitions - fixture filing

Definition: Fixture filing is the act of recording a security interest in personal property that is intended to become a fixture in public real estate records. This is done by filing a financing statement in the county where a mortgage on the real estate would be filed. The financing statement must include a description of the real estate.

Example: Let's say a business wants to install new machinery in a building they are leasing. The machinery is considered personal property, but it will become a fixture once it is installed. The business can file a fixture filing to protect their security interest in the machinery, in case the building owner defaults on their lease or goes bankrupt.

Another example: A homeowner wants to install a new chandelier in their dining room. The chandelier is personal property, but it will become a fixture once it is installed. The homeowner cannot file a fixture filing because they do not have a security interest in the chandelier.

The examples illustrate how fixture filing is used to protect a creditor's security interest in personal property that becomes a fixture. It ensures that the creditor has a legal claim to the property, even if the real estate owner defaults on their mortgage or lease.