Dear David,
We’ve made offers on a few homes lately, and have found each one to be inconsistent in terms of what’s included with the house and what isn’t. A seller recently wrote in their listing that they would include the central air conditioning with the sale, but exclude the chest freezer in the basement, which seemed quite unusual. How do we figure this out? – TRYING TO MAKE SENSE OF IT
DEAR TRYING: Figuring out what stays in the house and what leaves with the sellers depends on the type of property in question, and what is written in the agreement.
In the real estate world, property is classified as either a “fixture” or a “chattel”.
Fixtures are items that are physically attached (aka “fixed”) to the house, like the furnace or kitchen cabinets. These are sold as part of the house unless specifically excluded from the purchase agreement. The real estate rule of thumb is that if you need a tool to remove something from the house, it’s a fixture and should stay with the property.
Chattels are moveable pieces of personal property, like a chair, a winter coat, or a painting that hangs from a hook on the wall. You can pick these things up and take them with you. If you imagine turning a house upside down and shaking it, the chattels fall out while the fixtures do not. A mirror hanging from a hook on the wall is a chattel and goes with the seller, while a mirror screwed to the wall is a fixture and stays with the house.
Appliances are sometimes hard to categorize. Most are chattels, since they can be unplugged and moved. That said, gas appliances and built-in dishwashers are plumbed into the house, so technically qualify as fixtures. When it’s unclear if something should stay with the house or not, it’s important that your agent put it in the contract. The standard Agreement of Purchase and Sale has a “chattels included” and “fixtures excluded” section where these items can be listed specifically.
Realtors need to be cautious about the messaging used in their listings. In the example you mention, the Realtor went out of their way to include the central air conditioning, which is obviously a fixture. Does this mean that other fixtures, like the furnace, are not automatically included in the sale if they are not listed? By the same token, the agent excluded a chest freezer (a chattel) which a seller would typically take with them anyway. By excluding the freezer, do they need to exclude every other chattel or risk implying to the buyer that they are included?
PRO TIP: To clear up any ambiguity about what stays with the house and what does not, I include a comprehensive clause in all of my agreements that deals specifically with chattels and fixtures. When you put these details in writing, you have a much better chance of avoiding problems at closing. #Advice #AskDavid #TheNegotiator
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