What is the Difference between a Fixture and a Chattel?
What is a fixture, and what is a chattel?
“Fixture” and “chattel” are words that take on special importance in a real estate transaction, but what do these words mean, and why do they matter to a buyer or a seller of a home?
A fixture is an object which has become attached (or “affixed”) to the property. Common examples of fixtures are items which are fastened to a building, which itself is attached to the property—counters, built-in appliances, doors, sinks, and windows are all examples of fixtures. If an item is screwed, bolted, glued, or otherwise attached to a building, it will in almost all cases be a fixture.
Chattel describes objects which are not attached to the property. These are usually items which fill a home: chairs, tables, books, clothing in closets, art hanging on walls, and other personal effects not attached to the property or building are examples of chattels. If you can pick an item up and walk it out the door, the item is almost always a chattel.
Why is the difference important?
The standard language in most Ontario agreements of purchase and sale says that all chattels are excluded from a transaction, and all fixtures are included. This starting point typically makes sense: a buyer walking through a home before agreeing to buy it might reasonably assume that the home itself and the items attached to it like the counters, cupboards, and other fixtures are part of what they are buying when purchasing the home. Likewise, a seller might reasonably assume that they are not selling their personal effects in a home such as their clothes, books, dishes, and furniture.
If the buyer and seller want to deviate from this starting point by either excluding fixtures from the agreement, or including chattels, it is important to clearly specify that in the agreement of purchase and sale.
The standard paragraphs in an Ontario agreement of purchase and sale provide an opportunity for the buyer and the seller to clearly set out any chattels that are being included in the transaction, and to set out any fixtures that are excluded and the seller is allowed to remove, as in the example below.
The standard paragraphs in an Ontario agreement of purchase and sale addressing fixtures and chattels.
Areas of confusion
The difference between fixtures and chattels is usually clear, but some items can give rise to confusion.
TV wall mounts are likely the most common area for disputes. In almost all cases a TV wall mount is a fixture, and should only be removed from the property if it is listed as an excluded fixture in the agreement of purchase and sale. The TV hung from the wall mount, however, is usually a chattel.
Electric car chargers are fixtures, but also lead to frequent confusion as they can sometimes be specific to a make or model of electric car, and the car itself is of course a chattel. Electric car chargers are installed permanently to the property and are a fixture, so removing them on closing requires that they be listed as an excluded fixture in the agreement of purchase and sale.
Art on walls is usually a chattel. Where art is hung on the wall by conventional methods such as picture hangers or nails, the art will be a chattel and can be removed by the seller on closing. As with all fixtures and chattels, if in doubt it is best to clearly spell out the intent of the buyer and seller in the agreement of purchase and sale.
Gazebos and sheds can be somewhat less obvious. The courts have found that items sitting unattached to the property and which can be easily removed without damage to the property, including sheds and gazebos, can be chattels and may be removed by the seller unless otherwise covered by the agreement of purchase and sale. For large items such as these it is critical to set out the intent of both parties in the agreement of purchase and sale.
Best practices when it comes to fixtures and chattels
Good communication and a clear contract are the best way to prevent confusion and disputes over fixtures and chattels. A small amount of forethought can go a long way to preventing conflict on closing—if in doubt about whether an item is included or excluded from the purchase of a home, spell it out in the agreement of purchase and sale.
If the agreement does not specifically mention an item in question, talk to your lawyer about whether that item may be considered a fixture or a chattel, and how your agreement of purchase and sale may apply in your particular circumstance.
Fixtures, chattels, and their removal can be complicated and legal advice in this area is crucial: if you have questions please contact us to discuss.