Fixtures vs. Chattels: When in Doubt, Spell It Out

It's not uncommon for purchasers to assume that certain items they see in a home will remain with the property after closing, only to discover after taking possession that those items are missing. Disputes between the vendor and purchaser can arise, leading to stress and complications for all parties involved. This issue often stems from the agreement of purchase and sale and how the "fixtures" and "chattels" clauses are handled.

What Are Fixtures and Chattels?

Fixtures have been defined over years of common law by applying factors such as the degree of annexation, the nature and purpose of the item, the relationship between the parties, and the intention behind the installation of the item. In general, if something is affixed to the property and requires tools to be removed, it is likely considered a fixture. Once classified as a fixture, it becomes part of the real property and transfers with the home unless specifically excluded in the agreement of purchase and sale. Common examples of fixtures include ceiling lights, built-in closets, and coat hooks.

On the other hand, chattels are movable items that are not permanently attached to the property. Examples of chattels include appliances, furniture, area rugs, paintings, and curtains/drapes.

Clarifying Fixtures and Chattels in the Agreement of Purchase and Sale

In standard OREA agreements of purchase and sale, both parties have the opportunity to clarify which chattels are included with the sale and which fixtures are excluded. A prudent purchaser will explicitly list items in the offer, even if they are legally classified as fixtures. This helps avoid misunderstandings, where sellers may assume that certain fixtures—such as a designer chandelier they installed themselves—are theirs to remove before closing.

Legally, that chandelier is a fixture and would stay with the property unless specified otherwise. However, for the sake of clarity, a buyer may want to list it in the chattel section to ensure there is no confusion. If not listed, the seller might mistakenly believe they can take the chandelier, leading to post-closing disputes that could have been avoided with clear communication.

Advice for Purchasers: What to Include as a Chattel

As the title suggests: when in doubt, spell it out. Be sure to list fixtures in the "included chattels" section of the agreement. This makes it clear to both parties which items are to remain with the home. Even though the law may classify an item as a fixture, sellers may become emotionally attached to certain items and believe they have the right to remove them. By explicitly listing those items, you avoid ambiguity and help ensure they remain part of the purchase.

Advice for Sellers: How to Protect Fixtures or Chattels You Want to Keep

If you wish to exclude certain fixtures or chattels from the sale, you should clearly indicate this in the property listing. You can also take proactive steps by removing these items before listing the property and replacing them with standard models. For example, if you want to keep your designer chandelier, you can replace it with a more basic version before showing the home. Keep in mind that removing high-end items might affect the perceived value of your home, so it's important to strike the right balance.

This blog provides general information and is not intended to replace legal advice from a qualified professional. The examples and situations described are illustrative and not intended to address specific issues. The use of this information does not create a lawyer-client relationship. For legal advice on your specific situation, consult a lawyer before making decisions related to the issues discussed in this blog.