What is the Difference Between Fixtures and Chattels?

It is important to understand the difference between a chattel and a fixture when purchasing a property. A fixture is something that is attached to the land and cannot be easily removed without causing injury to the property. A chattel on the other hand is a moveable property that can be removed without causing injury to the property and it is presumed to be excluded from the sale price unless specifically mentioned in the agreement of purchase and sale. A fixture on the other hand remains with the property after the sale.

Disputes often arise among parties regarding whether something is a fixture or a chattel. Contact a real estate lawyer in Mississauga if you happen to be in a dispute over the categorization of property. There is a distinction at common law between real property (which includes land, building and other fixtures attached to the land) and personal property which is all property other than real property.

When it comes to describing a chattel in a transaction the industry rule is that “when in doubt, spell it out”. Purchasers can protect themselves by noting down all the details regarding the chattels such as their serial numbers, colors, model etc. in the agreement of purchase and sale.

This way the seller cannot switch the chattels before closing with less desirable products. Retain a real estate lawyer in Mississauga to help draft a warranty in the agreement regarding the operability of the chattel at the time of closing. Furthermore, any fixture that the seller wants to be removed must also be clearly stated in the agreement.