An improvement or item of personal
property on the real property becomes a
fixture when it is so attached to the real
property or building that it becomes part of
it.
Whether a chattel becomes a fixture
depends largely on the circumstances, with
particular emphasis placed on the method of
how the item is affixed, the intent of the
party(ies), and degree of importance to the
property. A chattel designed for temporary
use or convenience could remain as a
moveable item. However, if its purpose was
to enhance the property and is affixed
thereto, it might well become a fixture. As
with chattels, practitioners must clearly
identify in any agreement/contract what is
and is not included. The general rule is
that fixtures are part of the real property
and go with the sale unless specifically
excluded.
Rented items must also be listed and
acknowledged by the buyer as excluded from
the purchase price. In commercial tenancies,
the tenant can remove trade fixtures at the
end of the lease term, repairing any damage
caused by their removal.
The traditional division of chattels and
fixtures by degree of attachment is still
relevant, but it is only a starting point.
Make certain the listing is complete. Don’t
assume anything, especially the obvious. Ask
about the attractive ceiling fans, the large
area carpet, the built-in bookshelf, the
garage workbench, the satellite dish, the
television antennae, the ornate poolside
sculpture, and the solar pool cover. A few
minutes wisely devoted to identifying
chattel/fixtures can avoid potential
embarrassment, confusion, and disgruntled
consumers. Remember, chattels and fixtures
are largely in the eyes of the beholder. The
best protection is a detailed list
acknowledged by the parties to the
transaction.
Example of Chattels vs. Fixtures
In a simpler
time, real estate practitioners confidently
separated chattels from fixtures; the former
were always detached and movable, while the
latter remained affixed as improvements.
While common sense should prevail in such
matters, doubt can arise.
A 500 lb. Grecian urn adorning the
patio, is it movable or not?
An intricate interlocking paved
drive; looks permanent, but is it
attached?
The pool equipment, some are
attached and some are not. Which are
chattels and which are fixtures?
he list goes on and on: indoor vacuum
cleaning attachments, wall-to-wall carpeting
(fitted but not stapled), and satellite
dishes.
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