When buying or selling a home, understanding the difference between fixtures and chattels is crucial. These terms refer to types of property, and their classification can significantly impact real estate transactions. Here’s a detailed look at what each term means and why the distinction matters.

Defining Fixtures and Chattels

A fixture is any item that has become attached or affixed to the property. Common examples include counters, built-in appliances, doors, sinks, and windows. These items are typically fastened to a building, which itself is attached to the property. If something is screwed, bolted, glued, or otherwise permanently attached to a building, it is generally considered a fixture.

Chattels, on the other hand, are items that are not attached to the property. These include movable items such as chairs, tables, books, clothing, and art hanging on walls. Essentially, if an object can be picked up and moved without altering the property, it is classified as a chattel.

Importance of the Distinction

In Ontario, standard real estate agreements of purchase and sale usually specify that all chattels are excluded from the transaction while all fixtures are included. This default rule aligns with common expectations: buyers assume they are purchasing the home along with its attached items, whereas sellers assume they are not selling their personal belongings.

However, if either party wishes to deviate from this norm, such as by excluding certain fixtures or including specific chattels, it must be explicitly stated in the agreement of purchase and sale. The standard contract includes provisions for listing any chattels to be included and fixtures to be excluded, ensuring clarity and preventing disputes.

Common Areas of Confusion

Despite the general clarity, certain items can blur the lines between fixtures and chattels, leading to potential misunderstandings:

TV Wall Mounts: Typically, a TV wall mount is considered a fixture and should only be removed if specified as an excluded fixture in the agreement. The TV itself, however, is usually a chattel.

Electric Car Chargers: These are fixtures since they are installed permanently. However, confusion arises because they may be specific to a particular car model. Like TV wall mounts, they should be explicitly addressed in the agreement if they are to be removed.

Art on Walls: Generally, art hung on walls is a chattel and can be removed by the seller. However, it’s best to specify in the agreement if there is any uncertainty.

Gazebos and Sheds: Items like these, which are not permanently affixed and can be easily removed without damage, can be considered chattels. Whether they stay or go should be clearly outlined in the agreement.

Best Practices for Avoiding Disputes

Clear communication and a detailed contract are essential to prevent confusion over fixtures and chattels. Buyers and sellers should discuss and document their intentions regarding these items in the agreement of purchase and sale. This proactive approach minimizes the risk of disputes at closing.

If the agreement does not specifically address an item in question, consulting with a lawyer is advisable. A legal professional can provide clarity on whether an item is likely to be considered a fixture or a chattel based on the specifics of the agreement and the property.

Understanding and correctly identifying fixtures and chattels are vital in real estate transactions. Clear documentation in the purchase and sale agreement and professional legal advice can ensure a smooth process and avoid potential conflicts.