What Stays and What Goes: Chattels vs. Fixtures

Understanding what items stay with a property and what can be taken by the seller is a crucial aspect of any real estate transaction. The distinction between chattels and fixtures often leads to confusion, but it's a key factor that can significantly impact both the buyer and seller. Whether you're preparing to buy or sell a home, knowing the difference and ensuring clarity in the contract can prevent potential disputes and ensure a smoother transaction.

What distinguishes chattels from fixtures in a property sale?

When purchasing or selling a home, it's important to understand the difference between chattels and fixtures, as this can impact what is included in the sale of the property.

Chattels are movable items, not permanently attached to the property. They include furniture, loose appliances, pool equipment and garden tools. Chattels are considered personal property and are not typically included in the sale of a home unless specifically agreed upon in the contract.

Fixtures (of a property), on the other hand, are items that are attached to the property in a more permanent way. This includes built-in wardrobes, light fixtures, and permanently installed appliances. Fixtures are considered part of the property and are generally included in the sale.

What are the key differences between chattels and fixtures?

The key difference lies in how each item is attached to the property:

• Chattels can be removed without causing damage to the property. They are not integral to the property's structure or operation.
• Fixtures are integrated into the property. Removing them would typically cause damage or reduce the property's functionality or value.

Whether buying or selling, it's crucial to check the contract of sale to understand what is being included. If there's any confusion about whether an item is a chattel or a fixture, it's best to clarify this in the contract to avoid disputes later on.

What happens to chattels and fixtures not removed by the seller before settlement?

The seller is required to remove all chattels not included in the sale, as well as any substantial rubbish on the property, before settlement. The seller may also remove any fixtures that are excluded from the sale. Any property not removed by the seller before settlement is considered abandoned, allowing the buyer to dispose of it as they see fit.

If the property is currently tenanted and the tenancy is not noted in the contract, this obligation extends to the removal of both the seller’s and any tenant’s property before the time of settlement on the settlement date.