Chattels are personal property that are moveable and not affixed to the real property. Examples of chattels include dining room chairs, tables, and art hanging on the wall. Generally, in a real estate transaction, chattel will not pass to the buyer with the sale of the property. If certain chattels are to pass with the ownership of the real property, then these chattels should specifically be listed under the “chattels included” section of the agreement of purchase and sale. In agreement of purchase and sale forms 100 and 101 of OREA, chattels included are listed under section 4. The real estate agents and the lawyers involved in drafting the agreement of purchase and sale must be careful to include as much detail about a chattel as possible. For example, if there are multiple fridges on the property, you should include identifiers such as the color, the location, and the model number and a serial number of the fridge which is to be included in the sale. Failure to include adequate details about the chattel may lead to contention between the parties on closing.
Fixtures are personal property affixed to the real property. Examples of fixtures include ceiling fans, anchored chandeliers, and towel racks. If certain fixtures are not intended to pass with the ownership of the real property, then the fixtures should be specifically listed under the “fixtures excluded” section of the agreement of purchase and sale. In agreement of purchase and sale forms 100 and 101 of OREA, fixtures excluded are listed under section 5. Disputes often arise in situations where the distinction between fixtures and chattels is less clear. For example, the seller may consider a wall-mounted television a chattel, while the buyer may view it as a fixture. It is important that real estate agents representing the buyer and the seller carefully examine the property and ascertain what fixtures and chattels will be included or excluded to mitigate the likelihood of contention arising from confusion.
Contact us today if you require legal assistance with your real estate transaction. Our real estate law team has the experience and knowledge to assist you throughout every step of the transaction.
Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us.
About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.