What Is a Chattel?

| Buying

The term “chattel” is one of those real estate terms that can be confusing when you consider the definition:

“An item of tangible movable or immovable property except real estate and things (such as buildings) connected with real property.” Merriam-Webster Dictionary

Hmmm. Sounds like there’s a need for clarification. Here we discuss the things buyers and sellers should know about chattels during a real estate transaction.

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What Is a Chattel in Real Estate?

If you haven’t bought or sold a home before, it’s understandable to wonder: What are chattels? Chattels are tangible items that aren’t permanently affixed to the land or a building. In a real estate transaction, they’re considered “personal” property, not “real” property. And what is real property, you might ask? Real property refers to land and the permanent buildings, structures, or fixtures on that land.

What is an example of a chattel in real estate?

The most common chattel in real estate is appliances. Many first-time home buyers assume appliances such as kitchen and laundry appliances are part of the home. However, they are not affixed, so they are not included in the general offer. But we’re getting slightly ahead of ourselves. Let’s compare chattels and fixtures first.


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Fixtures vs. Chattels

What is the difference between a chattel and a fixture? Chattels are not permanently installed and are therefore taken when the sellers move. Fixtures are attached to the property and generally “come with” the home, such as:

  • Light fixtures
  • Ceiling fans
  • Bathtubs
  • Toilets
  • Sinks
  • Curtain rods
  • Built-ins such as cabinets, banquettes, etc.

If you need something more than a screwdriver to take it, it’s probably a fixture. But that’s not always the case. For example, something like a shed or a hot tub sunken into a deck is not always considered a fixture. Which brings us to our next section: Chattels and making a deal.

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Let’s Make a Deal: Separation Fixtures & Chattel in the Price

It is possible for buyers to ask if chattel can be included in a deal, such as high-end appliances or something like a shed in the backyard. However, the price for the chattel is separate from the property. For example, let’s say a property is listed for $1 million without the appliances, and the buyer is only interested in the home if the appliances are included.

The seller and their agent will apply a value to the appliances at say, $15,000. The overall deal is then set at $1.15 million. However, the appliances must be legally separated from the property price, as chattels are not included when calculating property and land transfer taxes.


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What Items are Often Mistaken as Fixtures?

Here are a few confusion-causing examples of chattels:

Appliances

Free-standing fridges and ovens are chattel. However, built-in wall ovens and counter-style stove tops are fixtures. In most cases a dishwasher is considered a fixture, while laundry appliances are not. Wait, what? Aren’t dishwashers, washers, and dryers installed via plumbing or air vents? Yes, however, dishwashers are also usually anchored to the counter, causing potential damage when removed. Washers and dryers are easily removed by simply disconnecting them from the water supply and vent.

Window treatments

Window treatments can also cause confusion, especially custom blinds, and California shutters. While drapes and curtains are not considered chattel, the curtain rods are. Blinds are not always considered fixtures depending on how they are installed, while “California shutters” are always fixtures due to their customization and installation process.

Kitchen islands

Kitchen islands are major attractions to buyers. However, today’s kitchen islands are often misleading, such as free-standing repurposed antique furnishings or butcher blocks. Only fully installed islands are considered fixtures.

Chattel Tips for Sellers

When preparing to list your home, a real estate agent will likely ask for a chattel list. What is an chattel list? It’s all the chattel items you will include in the sale of your home. When making this list, it’s also important to consider what you don’t want to include.  The easier way to avoid confusion or upset around chattel is to replace fixtures and chattels you plan to take with you, before listing. Otherwise, they have to be noted on the MLS description and Agreement of Purchase & Sale (APS) as chattel not included along with anything that is included.

Also, there’s a chance buyers will pass on putting in an offer if they find something cool, like a mid-century modern chandelier in your dining room or a special-order faucet in the bathroom, isn’t included. If you plan to take standout features with you, we can recommend an appropriate replacement to maintain the value and appeal of your home to avoid confusion or disappointment.


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Chattel Tips for Buyers

The most important thing when house hunting is to keep the basic definitions of chattel and fixtures in mind. We’ve run into enough issues to recognize sticky chattel-versus-fixture situations. Something as simple as a charming hutch in the kitchen can trigger a buyer’s desire to own the home.

When in doubt, we can ask if the sellers are willing to include specific chattel in the sale. But fair warning: the more unreasonable the ask, the higher the risk for disappointment. Unreasonable requests tend to sour the deal and see the sellers walk away.

Have you enjoyed this quick crash course on chattels? You’ll find a lot more valuable real estate advice in the rest of our blog posts. 

Do you have questions about buying or selling a home or want customized guidance throughout the process? The best Toronto real estate agents are standing by! Reach out to us today at 416.291.7372 or hello@christinecowern.com for more information or to schedule a showing.