Chattels vs. Fixtures in Real Estate

Chattels:

• Definition: Chattels are movable items that are not permanently attached to the building or land. They are personal property that can be removed without the use of tools.
• Examples:
  • Furniture (e.g., sofas, tables)
  • Home theater systems (if not built-in)
  • Computers and electronics
  • Garden shed (if not placed on a permanent foundation)
  • Clothing and personal items
  • BBQ grills

Fixtures:

• Definition: Fixtures are permanent items that are attached to the property and typically require tools and hardware to remove. Removing fixtures can potentially cause damage to the property.
• Examples:
  • Light fixtures (e.g., chandeliers, ceiling fans)
  • Plumbing fixtures (e.g., sinks, faucets)
  • Built-in cabinets and shelves
  • Door hardware (e.g., doorknobs, hinges)
  • Built-in appliances (e.g., dishwashers, ovens)
  • Furnace and hot water tank

Items Often Misunderstood:

• Fridge, Microwave, Portable AC: While these items are generally considered chattels, they are often included in the sale of the house. To avoid misunderstandings, they should be explicitly mentioned in the Contract of Purchase and Sale.
• Contract Inclusion: Ensure that the contract clearly specifies which items are included in the sale and which are considered personal property (chattels) to avoid any disputes or confusion.

Determining Chattels vs. Fixtures:

• Interpretation: Many items can be open to interpretation regarding whether they are considered fixtures or chattels. This can lead to misunderstandings if not clearly defined in the sale agreement.
• Examples of Ambiguous Items:
  • Satellite Dish: Often considered a fixture but may be removed by the seller if not specified otherwise.
  • Built-in Speakers: Typically fixtures if they are permanently installed.
  • Built-in Art Work: Can be considered a fixture if mounted permanently; otherwise, it might be considered chattel.
  • Built-in Vacuum System: Generally a fixture; however, the hose and attachments are usually chattels.
  • Television: Generally considered chattel, but a fixed bracket might be a fixture.

Contract of Purchase and Sale:

• Importance: To avoid disputes, it is crucial to clearly define in the Contract of Purchase and Sale which items will remain with the property and which items will be removed by the seller. This includes specifying whether ambiguous items like satellite dishes, built-in speakers, or certain appliances are considered fixtures or chattels.

By detailing these elements in the contract, both parties can ensure clarity regarding what is included in the sale and what is not, reducing the risk of disagreements and facilitating a smoother transaction.