When you see a property that is up for sale, you can’t always assume that what you see is what you will get! Buyers can be in for costly surprises if they find out, upon moving in, that the appliances, alarm systems, light fixtures, water heater, and other items they thought were a part of the house were actually not included. The items in the house are divided into two categories. But first, let’s take care of the definitions:
“Chattel” – “personal” as opposed to “real” property; any tangible movable property (furniture, domestic animals, etc.).
“Fixture” – an object firmly fixed in place.
Why would we care?
In the sale of real property, a seller (and the other relevant parties: buyer, agents, lawyers, etc.) must determine what objects in and around the property are chattels and which are fixtures so that it can be known which objects will be included in the sale of the property.
Some examples of “chattels” are obvious: pieces of wood sitting in a garden shed is clearly a “chattel”. However the same piece of wood in a fence surrounding a property is considered real property itself. It should be obvious how these two definitions play a part in the everyday real estate transactions.
The old adage rings true here: better safe than sorry. Misidentifying chattels and fixtures is one of the most common sources of turmoil in real estate, and that’s why a good Selling Agent will carefully detail what is included along with the real property in the notes on the MLS listing. The fact that the listing indicated that appliances are included will not mean much if they are not listed in the Offer. A responsible buying agent will confirm in writing which chattels will be included the purchase. It is also a good practice to take a note of model numbers of the appliances to make sure that they are exactly the ones you are getting. Chattels are often negotiable. A Seller might consider including an item they originally planned to take to their new home. It’s always good to ask.
Lastly, it’s very important to confirm whether there are any rental or lease agreements for things like alarm systems, water heaters, or furnace, monthly payments, remaining term of lease and the cost of terminating or buyout of agreement. A Buyer might also insert a clause on the Offer whether they will assume the terms of those contracts.
By getting all those details in writing, you know that you are making an informed buying decision.
For more buying or selling advice please contact me today, I will be honoured to serve you!
Aneta Malinski
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