What is the Difference Between Fixtures and Chattels?

Understanding Chattels and Fixtures in Real Estate

When buying or selling a property in Toronto, Mississauga, or North York, it is important to understand the difference between a chattel and a fixture. This distinction determines what stays with the property after closing and what the seller can take. A real estate lawyer can help ensure these details are clearly stated in your agreement to prevent future disputes.

What Is a Fixture?

A fixture is any item that is attached to the land or building in such a way that removing it would cause damage. Fixtures, such as built-in appliances or light fittings, are considered part of the property and remain with it after the sale unless specifically excluded in the Agreement of Purchase and Sale. Your real estate lawyer in Toronto or Mississauga can review the agreement to confirm which fixtures are included.

What Is a Chattel?

A chattel is a movable item that can be taken without causing any damage to the property. Examples include furniture, portable appliances, or decorative items. Chattels are typically excluded from the sale unless specifically listed in the Agreement of Purchase and Sale. A real estate lawyer in North York or Mississauga can ensure that the agreement correctly identifies these items to avoid misunderstandings at closing.

Common Disputes Over Chattels and Fixtures

Disputes often occur between buyers and sellers over whether something should be classified as a fixture or a chattel. Under Ontario real estate law, real property includes land, buildings, and fixtures, while personal property refers to chattels. If a dispute arises, it is essential to consult a real estate lawyer familiar with Toronto and GTA real estate laws to resolve the issue before closing.

Protecting Your Interests in Real Estate Transactions

In real estate transactions, the industry rule is simple: “When in doubt, spell it out.” Buyers should include detailed descriptions of all chattels in the Agreement of Purchase and Sale. This includes serial numbers, colors, and model details. Doing so prevents sellers from replacing or removing items with less desirable ones before the transaction closes. A real estate lawyer in Toronto or Mississauga can draft appropriate clauses and warranties to confirm that all chattels are operational at the time of closing.

Clearly Stating Fixture Removals

If the seller intends to remove any fixtures before the sale, this must be clearly stated in the agreement. Proper documentation protects both parties from potential misunderstandings and ensures a smoother transaction. Whether you are buying or selling property in Toronto, Mississauga, or North York, working with an experienced real estate lawyer ensures your rights are protected and that every detail is properly documented.