Chattels and Fixtures

Jun 6, 2017 | 0 comments

Did You Know?

When dealing with various Real Estate contracts and forms, what is meant when there is reference made to Fixtures and Chattels?

Items that are Fixtures stay with the land and will belong to the purchaser upon completion of the sale, while Chattels remain the personnel property of the Vendor(seller).

If a dispute develops with regard to an item being a fixture or a chattel and it is left to the courts to decide, the courts have adopted a general two-part test. The first aspect of the test has to do with the degree of affixation and the second aspect of the test concerns the purpose of affixation. Articles attached to the land merely by their own weight will generally be considered chattels unless circumstances show that they were intended to be fixtures.

As for the second aspect of the test, where an object is affixed for the better enjoyment of the object, it will be considered a chattel.

In short, ensure your listing contract and Contract for Purchase and Sale clearly define what is to remain with the property and what is not. For example, if you have an antique chandler in the dining room, ensure that it is clear that it is not include in the sale. You may even consider replacing it prior to listing the house, that way a potential buyer isn’t disappointed when they realize the chandler doesn’t come with the property.

For additional information on this or any other topic please Josie or Greg we will be happy to answer your questions.