Ever heard the terms “fixtures” and “chattels” thrown around when buying or selling a house?
These might seem like fancy legal jargon, but understanding them is crucial for both buyers and sellers.
So, what exactly are chattels?
Simply put, they’re movable personal belongings that aren’t considered part of the property itself. Think furniture, appliances, artwork or clothes.
Why are chattels important in real estate?
Because they’re not automatically included in the sale of a property.
The contract will usually specify which chattels, if any, are included or excluded in the deal.
This can be a source of confusion and even disputes if not properly addressed.
Here’s what you need to know about chattels:
- Distinguishing chattels from real property: Real property refers to the land and any permanent structures built on it (like houses). Chattels, on the other hand, are movable and not permanently attached.
- Inclusions and exclusions: The sale contract should clearly list any chattels that come with the property (like built-in appliances) and any that the seller intends to take (like their favorite painting).
- Condition and ownership: Buyers should inspect the included chattels to ensure they’re in the expected condition. Sellers must have legal ownership of the chattels they are selling.
- Disclosure of defects: Sellers have a responsibility to disclose any known issues with chattels that might affect their value, like a faulty dishwasher.
- Removal of chattels: If the seller plans to remove certain chattels before the sale is finalised, it should be clearly stated in the contract.
Property lawyers
Feeling overwhelmed? Don’t worry! This is where property lawyers come in.
They can offer expert advice on:
- Classifying chattels: They can help determine whether an item is a chattel or a fixture, which can have legal implications.
- Contract review and negotiation: They can ensure the contract accurately reflects the agreed-upon terms regarding chattels.
- Due diligence: They can verify ownership and check for any restrictions on chattels included in the sale.
- Dispute resolution: In case of disagreements, they can help you navigate towards a favourable outcome.
Whether you’re buying, selling, or entering the exciting world of real estate as an agent, understanding chattels and seeking professional guidance from property lawyers can ensure a smooth and successful transaction.
