When most people think about buying a new home and negotiating a contract, price is usually top of mind. While the final purchase price is certainly a big deal, there are many other terms that need to be considered when purchasing a new home and fixtures and chattels are two very important pieces.
What’s the difference between fixtures and chattels?
By definition, dictionary.com defines a fixture as something securely, and usually permanently, attached or appended, as to a house, apartment building, etc… Typical examples are light fixtures and kitchen fixtures such as faucets.
Dictionary.com defines a chattel as a movable article of personal property. Typical examples of chattels are kitchen appliances, laundry machines and furniture.
Fixtures, by default, are deemed to be included in a standard Agreement of Purchase & Sale unless specifically excluded. That means that if you make no mention of any fixtures in the contract, everything that is securely attached to the property will be included. The most common fixtures that some sellers like to exclude are dining room chandeliers or specific lighting fixtures and drapes or specific window coverings.
Chattels are NOT included by default in a standard Agreement Of Purchase & Sale and must be added to an agreement if the buyers wants them included. The seller will usually indicate any additional chattels that may be included with the home in the MLS listing but of course, everything is negotiable. The most important thing is to be specific when describing the chattels to minimize any “grey” area.
Most agreements include kitchen appliances in the deal but it’s important to not simply write “kitchen appliances” into the agreement. The more specific you can be, right down to the model number, if possible, the better. If you are too broad, the seller could end up switching the appliances for cheaper alternatives before closing. It’s also a great idea to take pictures of the included chattels during your home inspection.
Eliminating Confusion & Arguments
It’s easy for chattels and fixtures get overlooked or mixed up and can often be the cause of confusion or arguments at closing. While things like pieces of art and photos are generally considered to be chattels (since they are only hanging on the wall and not securely or permanently affixed), certain items like TV wall mounts or bathroom mirrors need to be specifically excluded in the agreement if they aren’t intended to be part of the deal.
In these cases, you should also specify that any holes left or damage caused to the drywall must be repaired before closing. You may also want to specify that a certain fixture be replaced before closing. This is especially important if the seller intended on excluding all the light fixtures. This way, you won’t be walking into a dark home when you get the keys.
Other items such as “built-in” furniture can sometimes cause confusion. A buyer might assume a bookcase, fireplace or other piece of furniture to be built-in and thus a fixture, but it’s important never to assume and don’t leave things in the “grey” area. When in doubt, write it into the contract and be specific.
Warranties on Fixtures & Chattels
Most real estate agents will include a clause that states that all fixtures and chattels included in the Agreement Of Purchase And Sale will be in “good working order” on closing. This clause essentially means that you should immediately check all the appliances the same day you get the keys. If you don’t plan on moving in until a few days after closing, you should still visit the home to give everything a check. This clause will only fully protect you if you take immediate action. Anything later becomes a “grey” area, once again, and you might not have any claim against the seller.
One of the perks of purchasing a home with Martin is that he will provide you with an extended 6 months of insurance against your home systems and appliances breaking down, up to a maximum of $15,000 in coverage. Examples of your home systems include your central heating system, your central air conditioning, plumbing, electrical, etc.. and appliances include your refrigerator, oven, dishwasher, laundry appliances, etc.. For more information on this bonus coverage, please contact Martin directly.
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