Real Estate and Fixtures
But first, let’s define what a fixture is; a fixture is anything that is currently on or inside the piece of real estate property. You could have things like light fixtures, which would be any form of lamps, or attached ceiling lights in or around the piece of real estate. A ceiling fan is also an example of a fixture. Basically anything that is not the actual home is considered a fixture!
Oddly enough, the two biggest kinds of fixtures regarding residential real estate that create the most issues between the buyer and seller are dining room fixtures and tool sheds, which are usually located outside. Tool sheds? It sounds crazy, but if you’ve ever been house hunting and seen a home with a small or medium sized storage or tool shed in the backyard, that is actually a fixture. Most buyers don’t expect the sheds to be picked up and taken away after the sale, but it happens more often than you’d think and can create some real problems including a visit to the local judiciary!
So how can we, as buyers and sellers of personal real estate, avoid the discrepancies which fixtures create? Well, knowledge is power, and knowing is half the battle. The other half is a good solid contract of sale!
There are several things to know about fixtures, ways to define a fixture in a piece of real estate, and also how the law applies to real estate regarding fixtures. Let’s take a look at some of these applications and definitions.
Annexation: Regarding a fixture in a piece of real estate, this term basically defines it as attached, or not attached to the property. If you have a ceiling fan as we used in an earlier example, and it’s screwed in and attached, that fan is now part of the real estate. If however it was a stand alone fan simply plugged into the wall, it would not be permanently attached and would not be expected to remain in the home upon sale. Of course, if you bought the house after looking it at with a ceiling fan attached, and you came back later and saw it was gone and there was a hole in your ceiling you would be quite upset!
Adaptation: When this term is used regarding a fixture in a piece of real estate it applies to how the fixture was made. Many home owners get things custom built for their home. Perhaps a certain fixture can’t be put somewhere without custom alterations made to it, if the alterations are made specifically for that piece of real estate, it is considered part of the real estate when the sale is made. In a nutshell, if the item has to be “adapted” to the home, it is now part of it!
Now it seems a bit complicated doesn’t it? You never thought that chandelier could create such a mess! Well, here is a little tip from the experts regarding fixtures in a piece of real estate.
“If you don’t want it sold, take it down before showing. If a prospective buyer never saw it, they will never know it existed in the real estate and is exempt.”
This little quote is widely followed amongst sellers, and it does make sense. If you want to keep a fixture within your real estate, remove it before listing and showing! If they never knew it was there they won’t miss it.
Lastly, the absolute best way to not run into fixture discrepancies when you are buying or selling a piece of real estate is to have a thorough working knowledge of the contract. A solid real estate contract should include agreements about fixtures amongst other things, and if both parties know what they are signing and what to expect, there shouldn’t be any issues.
