Fixtures vs. Chattels in Ontario Real Estate

When buying or selling a home in Ontario, questions can arise about which items stay with the property, and which items the seller is entitled to take.

Understanding the difference between fixtures and chattels, and clearly addressing included and excluded items in the Agreement of Purchase and Sale, can help avoid disputes before closing.

What Is the Difference Between a Fixture and a Chattel?

Generally, a fixture is an item that has become sufficiently attached to the property that it is considered part of the real property.

A chattel, on the other hand, is personal property that remains separate from the real property.

However, the distinction is not always as simple as determining whether an item is physically attached. Whether an item is considered a fixture or a chattel can depend on the circumstances, including the manner and purpose for which it has been attached to the property.

For this reason, items that may create uncertainty should be specifically addressed in the Agreement of Purchase and Sale.

What Are Some Examples of Fixtures?

Items commonly associated with fixtures may include:

• Built-in cabinetry;
• Certain light fixtures;
• Built-in shelving;
• Plumbing fixtures; and
• Other items that have been attached to the property as part of the home.

Whether a particular item is legally considered a fixture will depend on the circumstances.

What Are Some Examples of Chattels?

Chattels are generally movable items of personal property that have not become part of the real property.

Examples may include:

• Freestanding furniture;
• Area rugs;
• Artwork;
• Certain appliances; and
• Other movable personal belongings.

A seller’s personal belongings would generally not form part of the sale unless the Agreement of Purchase and Sale provides otherwise.

What About Items That May Be Unclear?

Some items may be less straightforward to categorize as fixtures or chattels.

For example, appliances such as refrigerators, stoves, dishwashers, washers and dryers may be included in a transaction, but whether they form part of the purchase should not simply be assumed. Similar questions can arise with televisions, TV mounts, mirrors, shelving, window coverings, security equipment and other items that may be attached to or used with the property.

Where there may be uncertainty about whether an item is included or excluded, buyers and sellers should clearly address the item in the Agreement of Purchase and Sale rather than relying on assumptions about whether it is a fixture or chattel.

Why Should Fixtures and Chattels Be Listed in the Agreement of Purchase and Sale?

Clearly identifying included and excluded items can help ensure that the buyer and seller have the same expectations before closing.

For example, if a seller intends to remove a particular light fixture or wall-mounted item, that intention can be addressed in the agreement. Similarly, if a buyer expects certain appliances or other items to remain with the property, those items can be specifically included.

The more clearly the agreement identifies items that may otherwise be uncertain, the less room there is for disagreement later in the transaction.

What Happens If an Item Is Removed Before Closing?

Disputes can arise when a buyer expects an item to remain with the property but discovers before closing that the seller has removed it.

What rights or remedies may be available will depend on the nature of the item, the wording of the Agreement of Purchase and Sale and the particular circumstances.

If an item that was expected to remain with the property has been removed, replaced or damaged before closing, the issue should be brought to the attention of the buyer’s real estate lawyer as soon as possible.

How Minhas Lawyers Can Help

Minhas Lawyers Professional Corporation assists buyers and sellers with residential real estate transactions throughout Ontario.

Our real estate lawyers can review Agreements of Purchase and Sale, assist with questions concerning fixtures and chattels, address issues that arise before closing and guide clients through the legal steps required to complete their transaction.

Contact

For assistance with a purchase, sale or other real estate transaction, contact Minhas Lawyers.

Email: [email protected]
Phone: (905) 671-9244

Serving Mississauga, Brampton, Toronto, the Greater Toronto Area, and clients throughout Ontario.

This article is provided for general informational purposes only and does not constitute legal advice. Whether a particular item is considered a fixture or chattel, and the rights and obligations of the parties, will depend on the Agreement of Purchase and Sale, the nature of the item and the particular circumstances of the transaction. You should obtain legal advice regarding your circumstances.