Buying a home can be a complex process, and one area that often causes confusion is understanding chattels and fixtures – the items in the home that are included (or not) in the sale. These are a part of each sale and can vary significantly from one property to another, so we’ve broken it down for you to ensure your new home includes everything you need.
What are Chattels?
A chattel is an item of personal property that you can easily remove and is not attached to the home. It’s items like a couch or a BBQ. An easy way to describe a chattel is if you picked up your house and turned it upside down, it would fall out. Generally chattels are the items not included in the sale, but that doesn’t mean they can’t be up for negotiation. If there’s something in the home that you’d like to include in the sale, talk to your agent to see if it could be up for negotiation with the sellers. In some cases, the seller may be moving out of country or downsizing and may wish to include all the furniture in the sale. It’s actually very common in the sale of cottages and the purchase price will typically include most, if not all, the belongings in the home.
What if chattels are left behind?
A seller can’t leave behind chattels they don’t want. If it’s not spelled out in the Agreement of Purchase and Sale (APS) or negotiated after the deal, the APS specifically states that upon closing the property will be free of all furniture and debris. It’s the responsibility of the seller to ensure this is done prior to closing. Sellers will sometimes leave behind items thinking they are doing the buyers a favour, but the truth is, if the buyers want something left behind then they’ll ask for it and specify it in the APS.
Chattels- Not Included
What are Fixtures?
A fixture is an item that is part of the building, built-in and immovable, and is assumed to come with the property upon closing. These are items that would require a tool to remove them, and they are considered part of the property, like a fridge or toilet. Anything that would require someone to physically detach the item would be considered a fixture.
Fixtures- Included
Grey Areas
As you can probably guess from above, there are many grey areas within the definitions of fixtures and chattels. Some common items that fall somewhere between traditional definitions include:
So how can you know what will be included in your purchase?
How to Avoid Issues in Your Purchase
Unless an item is very obviously a fixture, it needs to be specified as an inclusion in the APS if you expect it to stay in the home. Major appliances are fixtures that are commonly listed in the inclusions section of an APS for clarity. Grey area items like electrical light fixtures (ELFS) or window coverings are also commonly listed in the inclusions or exclusions sections to ensure both the buyer and seller are clear on whether they stay in the home after closing. When working out a deal, never assume. Both buyers and sellers need to be specific and clear. The best way to do this is to have it in writing in the initial offer so that everyone knows what they’re getting or not getting. This will go a long way towards minimizing misunderstandings, disappointment, and potential litigation.
Resolving Disputes
Misidentifying chattels and fixtures is one of the most common sources of dispute in real estate, but the unclear nature of this area means that pursuing legal action regarding missing items is very tough. Unless an item is listed in the APS as included and has been taken from the home, you’ll have a hard time finding a resolution through the courts. If an item that was meant to be an inclusion is absent from the house when you take possession, the seller is liable for breach of contract. Most often things don’t have to escalate to that point; advise your agent and ask them to connect with the sellers to find a resolution. It’s possible there is just a misunderstanding, and once clarified, both parties come to an agreement. This is why a final walkthrough a few days before closing is important. It helps to ensure there are no surprises on closing day, that everything that is meant to stay in the home is there. If there is something missing or significantly damaged, real estate lawyers have time to fix the situation prior to closing.
Buying a home is stressful enough; avoid confusion and disappointment by communicating clearly and specifically about all aspects of the purchase from the get-go. This proactive approach, along with a final walkthrough, ensures a smoother transaction and helps prevent costly surprises after closing.
