The law distinguishes between real property and personal property. Real property consists of land and the buildings and fixtures attached to the land. Personal property is all property other than real property such as chattels. When you purchase or sell a home, the items inside that home, known as fixtures and chattels, are often a hot topic for debate between the purchasers and sellers. But before getting into the details of that, it is important that you understand the difference between fixtures and chattels and how you should approach them during a purchase and/or sale of a home or building.

What Are Fixtures?

A fixture is property that is attached to the land or building in such a way that its removal would damage or harm the land or building, making it real property. Common examples of fixtures may include a hot water heater, ceiling fans, chandeliers, blinds, smoke and carbon monoxide detectors, and built-in shelving and cabinets.

What Are Chattels?

A chattel is property that is not permanently attached to the land or building and can be easily removed, making it personal property. Common examples of chattels usually include home appliances and furniture such as fridge, microwave, washer/dryer, lamp, beds, couch's, rugs, and curtains.

The Grey Area

Unfortunately, regardless of the list of examples above, distinguishing between a chattel and a fixtures is not so straightforward. There is a lot of grey area regarding what category somethings may fall under. If you are unsure whether an item is a chattel or fixture, the answer lies within the test of degree of affixation, meaning, how moveable the item is.

Let's take a microwave as an example, if the microwave is sitting on a countertop, it is a chattel. However, once that microwave becomes affixed to or forms an integral part of a kitchen cabinet system, it can become a fixture.

From the perspective of buyers and sellers and their agents, if you are not sure whether an item is a chattel or fixture, the best way to avoid conflicts, is to clearly communicate what each party wants included and excluded, by being as descriptive and specific as possible about the items and making your intentions clear in the Agreement of Purchase and Sale.

What Happens During a Purchase and Sale?

When it comes to purchasing and/or selling a home or building the most important document for both the purchaser and the seller is the Agreement of Purchase and Sale. This document contains vital information regarding the transaction, including what fixtures and chattels will be left with the home or building and what items will be taken. Keep in mind that fixtures always remain with the land and building unless specifically excluded in the agreement, whereas chattels are not included in the transaction unless specifically included in the agreement.

Connect With Suzanne Desrosiers Professional Corporation

If you are looking for guidance or have any questions about fixtures and chattels, or other real estate transactions, please feel free to reach out to Suzanne Desrosiers Professional Corporation by calling us at (705) 268-6492 or emailing us at info@sdlawtimmins.com and we would be more than happy to help!