Wednesday, June 17, 2009

Take it or Leave it?

In the sale of a home, certain items are considered "fixtures" or "real property", and others are items that can be removed by the sellers. Knowing the difference, and making sure that any borderline items are mentioned in the purchase contract is quite important. Misunderstandings in this area account for a great many disputes between buyers and sellers. Unfortunately, if not addressed earlier, there is usually no inkling of a problem until the walk-through a day or two before closing. By then, the sellers may have already shipped the items with their movers.

Normally, appliance items that have some type of hard connection to the home are considered fixtures and should remain. A range or oven generally has a gas connection or substantial wiring. They are also normally "built-ins." If an item appears to have been built into the cabinets, it would generally remain. This would include a built-in microwave oven. However, a microwave that stands on the counter would normally be something the sellers would take with them. Generally, unless built into the wall or cabinetry such that removal would cause damage, a refrigerator would be personal property subject to removal. However, in some areas of the country, it has become customary to leave the refrigerator. This is one item that likely should be mentioned specifically in the listing, in the contract, or both. Almost always, a chest or upright freezer is not a fixture and would be taken by the sellers unless otherwise negotiated. Clothes washers and dryers are normally taken by the sellers.

Believe it or not, light fixtures hanging from ceilings are involved in a great many disputes. It seems that sellers forget to tell their listing agent that the chandelier hanging in the dining area is a family heirloom. The buyers arrive for the walk-through and find the chandelier gone with a cheap fixture in its place, or nothing at all. Many states have incorporated language in their purchase agreements specifically stating that all mounted lighting is to remain in the home unless buyer and seller agree on removal. If that wording is present, you probably do not need to worry about a really ornate ceiling or wall-mounted fixture. Remember though that anything can be written into a contract, so have it put in if you're concerned.

Window coverings are something that are normally mentioned in the listing, the standard purchase agreement language, or both. There isn't normally a fixed rule for them, so make sure that you know what the seller intends with regards to blinds, drapes or other window coverings. Of course, if you don't like them, then you might want them taken by the sellers. Otherwise, look for the specific disposition of window coverings in writing.

Another area of dispute involves mirrors and shelving that appear to be attached to walls. Many mirrors are hung like artwork with wire on a picture hanger. This is not a permanently attached fixture, and the seller will probably take it with them. When you've made a decision to make an offer on a home, a second walk-through is a good idea. Carefully try to move shelving and mirrors that appear to be attached to the wall and that you would want to stay with the home. If they're firmly attached and you cannot move them, they're probably a fixture. If that mirror moves around, it likely will be removed by the sellers. If you like it and feel that it is the perfect piece for that room, have your real estate agent write into the contract that it is to stay.

Landscaping planted in the ground, rocks used for landscaping, in-ground watering systems, and edging around flower beds will usually be considered permanent and remain. However, yard statuary and plants in pots may be removed by the seller. Swing sets and outdoor play equipment are personal property and subject to removal by the sellers. A hot tub built into a deck would normally be a fixture, while a free-standing hot tub, even if there's a water line piped to it, would be an item to negotiate. Otherwise, it could result in a dispute. Pool equipment, awnings and mailboxes are usually considered fixtures to remain with the home. Satellite TV equipment is a variable. Sometimes it's rented from the satellite provider, and at other times it's owned by the sellers. This is one item that almost always needs to be addressed somewhere in the purchase agreement.

You're about to make a very large purchase, likely mortgaged with many years of payments. Don't be shy about asking questions and having items written into the contract if there is any doubt as to who will end up with them after closing. You may find that, far from being upset, the sellers will thank you for bringing up an item that they expected to take but hadn't excluded in the listing. At least the negotiation will be at the time of the purchase offer, not 24 hours before closing. As the buyer, you also have a bit more negotiation power in the offer process.

Allison Van Wig©.

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