The last thing anyone wants during a property sale is a dispute over whether a light fitting, dishwasher, or curtain rod is included in the deal. However, disagreements over items that have been agreed to outside of a contract can be quite common.
It is important to understand the difference between an included chattel and excluded fixture before signing a contract of sale. Clearly setting out these details in a contract prior to execution can help avoid unnecessary stress and last-minute disagreements which can lead to legal disputes, settlement delays.
What is a Chattel?
A chattel is a movable item that is not permanently attached to a property. These are usually personal belongings that can generally be removed without causing damage or requiring major work.
An ‘included chattel’ under the contract is a moveable item that the seller agrees to leave behind as part of the sale. These do not automatically form part of a property sale unless they are specifically included in the contract.
Many people assume that large or heavy objects automatically stay with the property, but that isn’t always the case. What matters most is how the item is attached; not its size or weight.
Some examples of chattels are:
- Fridges;
- Washing Machines;
- Curtains;
- Outdoor furniture; and
- Freestanding furniture.
What is a Fixture?
A fixture is an item that has become part of the property because it has been permanently attached or installed.
An ‘excluded fixture’ under the contract is a fixture that the seller intends to remove before settlement, even though buyers may expect it to remain with the property.
Because fixtures are generally considered part of the property sale, any fixture the seller wishes to remove, should be clearly noted under the relevant section ofthe contract.
Some examples of fixtures are:
- Specific light fittings;
- Wall-mounted TV brackets;
- Curtain rods or louvers;
- Smart home systems; and
- Dishwashers.
Why is it important to include chattels and excluded fixtures in a Contract?
Clearly listing ‘included chattels’ and ‘excluded fixtures’ in the contract helps ensure both parties understand exactly what is and what isn’t included with the property sale.
Noting each item specifically in the contract is important because it:
- Avoids confusion about what is and what isn’t included or excluded from the sale;
- Protects the buyer from discovering missing items at settlement, that they have no claim to
- Protects the seller from having to leave items they never had intentions of leaving after settlement;
- Helps prevent last minute disagreements; and
- Reduces the risk of delays to settlement or compensation claims.
Therefore, included chattels and excluded fixtures might seem minor, but they can cause time consuming and costly disputes.
The most important thing is making sure both the buyer and seller are on the same page before contracts are signed and by including as much detail as possible in the contract to prevent this.
Contact the property team at FC Lawyers for assistance on what should and shouldn’t be noted in the contract.
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