What's a Chattel, What's a Fixture (and why should I care)

by Hugh Hardy

Available Articles

• Article Index
• Are you "signing your life away"?
• Buying new versus resale
• Choosing a Realtor - What does it take to sell your home?
• Don't push the river!
• Getting the most from your Realtor
• Home ownership is part of smart money management
• Knowing your strengths and weaknesses
• Let's talk about commissions
• Open vs Closed? Making the most of your mortgage
• Prepare your home to command a premium price
• Real estate trivia
• Recognizing the paper tiger
• The easy way to buy a custom home
• The importance of pricing right
• The value of a buyer's agent
• Two safe ways to trade up
• What does irrevocable really mean?
• What to expect from your agent when you buy
• What's a Chattel, What's a Fixture (and why should I care)

If you are buying or selling a home these days, you should know a little bit about chattels and fixtures. Many of the minor disputes that come up in the course of real estate transactions are focused on the difference between fixtures and chattels. A little foreknowledge of this topic could sure go a long way to nipping these disputes in the bud.

Basically, a chattel is defined as a "moveable item or personal property". A fixture is defined as anything that is "affixed to the property and which has a degree of importance to the property". A chattel can become a fixture by being fixed to the property. But some chattels remain chattels even though they are attached to the dwelling. An example of this would be a hanging oriental rug which is nailed to the wall. The reason that this item does not become a fixture is that it does not serve the function of the house - it does not have "a degree of importance to the property".

Now if this is somewhat confusing, I'm not surprised, because the classification of specific items as either fixtures or chattels is a murky one. Opposing positions are often taken with valid arguments on both sides. Is my deluxe 700 lb. concrete birdbath a chattel or a fixture? It may not be attached, but it sure isn't going anywhere either. And what about wall-to-wall carpeting that is fitted but not attached with either carpet track or any other kind of tacks? You could argue these "until the cows come home" (and I'm pretty sure the cows are chattels).

What really makes the distinction between chattels and fixtures a loaded question is that in real estate transactions any fixtures which are not specifically mentioned in the Agreement are considered to be included, and any chattels are considered to be excluded. So it really becomes a money issue. It's not too unusual to see Purchasers move into a house and say... "we thought that the satellite dish was included but it's been taken".

The best defense in these situations is to clarify any ambiguous items in the Agreement of Purchase and Sale. To avoid confusion, it's standard practice to specify any rental items on the Agreement. It's also normal to say something like this in the Agreement: "Purchase price to include all permanent fixtures now on the property including all existing light fixtures, storms, screens and storm doors, heating equipment, drapery tracks, broadloom where laid, and all shrubs and landscaping." Even though this clause helps to clarify included and excluded items somewhat, it may not be detailed enough to avoid future conflict. Obviously you can't cover everything, but a more detailed list of included items can save some grief later on.

So when you are buying a house, I recommend spending some time going over what you feel is included in the purchase - and then itemizing the significant items for inclusion in the offer - even if it's a full page to be included as an Addendum to the Agreement. Your Realtor can help you with this.

REALTYGUY.com