It is crucial for a buyer and seller to understand the difference between chattels and fixtures in a purchase and sale transaction. Buyers may not be aware of the value of an item in their new home or be surprised when an item they assumed would be included in the purchase is not. Establishing the status of chattels and fixtures in the purchase and sale agreement is essential in order to avoid any conflict.
So, what is the difference between the two?
Chattels are moveable possessions and personal property items that can be removed without injury to the property. Chattels are rarely included in the purchase price unless they are specifically noted in the agreement of purchase and sale.
Fixtures are items that are attached to the property and are generally included in the purchase price unless they are specifically excluded in writing in the agreement of purchase and sale.
A seller must therefore leave all fixtures and take all chattels on closing.
Certain items such as a built in dishwasher, a wall mounted television, light fixtures and window coverings can be considered as either a chattel or a fixture. To avoid any misunderstanding, the agreement of purchase and sale must state if they will be taken or left behind on the closing date.
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