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The term chattels refers to personal property that is movable and not permanently attached to the land or building. Unlike real property, which includes land and anything permanently affixed to it, such as houses or trees, chattels are items that can be easily relocated without causing damage to the structure or the land.
This distinction between real property and personal property is important in real estate transactions, as it determines what is included in the sale and what is not.
Types of Chattels in Real Estate
- Tangible Chattels: These are physical, movable objects such as furniture, appliances, vehicles, tools, and equipment. If you can pick it up and move it, it likely qualifies as a chattel.
- Intangible Chattels: Although rare in real estate, intangible chattels include non-physical assets like stocks, bonds, or intellectual property rights. These are still personal property, but they lack physical form.
Key Features of Chattels
- Movable: Unlike fixtures (items attached to the property), chattels are easily movable. Examples include sofas, rugs, and kitchen appliances not built into the structure.
- Personal Property: Chattels are considered personal property, not real property, meaning they are owned by the individual, not inherently tied to the land.
- Not Included in Sale: Unless specifically agreed upon, chattels are usually not included in the sale of real estate. This can lead to misunderstandings if the buyer assumes certain items (like a refrigerator or curtains) will be left behind.
Chattels vs. Fixtures
A major point of confusion in real estate transactions involves determining whether an item is a chattel or a fixture. A fixture is something that is permanently attached to the property, such as a ceiling fan, built-in cabinets, or lighting fixtures.
To differentiate between the two, here are some general guidelines:
- Fixtures: Permanently attached, removal would cause damage, intended to remain with the property.
- Chattels: Movable, not integral to the structure, and intended to be taken by the seller upon moving.
For example, a built-in dishwasher is generally considered a fixture, whereas a freestanding microwave is a chattel.
Legal Implications in Real Estate Transactions
In real estate transactions, it’s crucial to clearly define what chattels are included or excluded in the sale. Buyers and sellers should list these items in the contract to avoid disputes. For instance, if the buyer wants specific chattels like a refrigerator or a washer and dryer to remain with the property, these must be negotiated and specified in the purchase agreement.
If the sale agreement is silent about certain items, they may default to being considered chattels and are assumed to leave with the seller unless proven otherwise.
Examples of Chattels in Real Estate
- Furniture: Sofas, chairs, tables, and beds are classic examples of chattels.
- Appliances: Freestanding refrigerators, washers, dryers, microwaves, and portable air conditioning units are often considered chattels unless otherwise specified.
- Tools and Equipment: Gardening tools, lawnmowers, and other equipment not attached to the property fall under chattels.
- Decorative Items: Wall art, rugs, and curtains that are not permanently attached to the walls or floors.
Conclusion
Chattels in real estate refer to movable personal property that is not permanently affixed to the land or building. The distinction between chattels and fixtures plays a crucial role in real estate transactions, as it influences what is included in the sale. It is always recommended that buyers and sellers clearly specify which items will remain with the property and which will be taken by the seller to avoid potential disputes.