When buying or selling a property, it's important to understand the distinction between chattels and fixtures. These terms often come up in real estate transactions and are included in every Agreement of Purchase & Sale in Ontario. Let's break down what each term means and why it's essential to understand the difference.
What Are Chattels? Chattels are movable items that are not permanently attached to the property. Common examples of chattels include non-built-in appliances, curtains, artwork and furniture. In real estate transactions, chattels typically remain the seller's property and are not included in the sale unless specifically stated in the contract.
What Are Fixtures?
What Are Chattels? Chattels are movable items that are not permanently attached to the property. Common examples of chattels include non-built-in appliances, curtains, artwork and furniture. In real estate transactions, chattels typically remain the seller's property and are not included in the sale unless specifically stated in the contract.
What Are Fixtures?
Fixtures, on the other hand, are items that have been attached to the property in such a way that they become part of the land or structure. Fixtures are considered part of the property and are usually included in the sale. Examples of fixtures include curtain rods, built-in cabinets, light fixtures and garage door openers.
Why the Distinction Matters?
Understanding the difference between chattels and fixtures helps prevent disputes during property transactions. Buyers should ensure that the contract clearly specifies which items will remain with the property and which items the seller will take. It's always wise to list all included or excluded items in writing to avoid misunderstandings.
Can I Exclude a Fixture When Selling My Home?
Absolutely! It's not uncommon for a seller to exclude a fixture from the sale of their home. An example might be an antique light fixture that they'd like to bring to their new home. In this case, they would have two choices: 1) The fixture could either be removed and replaced before putting the property on the market, or 2) It could be listed as an exclusion in the MLS® listing and then written as an exclusion in the Agreement of Purchase & Sale. If choosing the latter, the light fixture would typically need to be replaced.
The line between chattels and fixtures is not always clear, but knowing the basics can help you navigate property transactions with confidence. When in doubt, reach out to your trusted real estate agent to clarify any uncertainties and protect your interests.
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