We explain the difference between CHATTELS vs FIXTURES, as well as the common mistakes made when categorising items when selling a property in Queensland...
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Simplified: Chattels vs Fixtures
When purchasing or selling a property in Queensland, it is important to understand the difference between chattels & fixtures. These two terms refer to different types of property that can be included in a sale. Understanding the difference is essential to ensure that all parties involved are clear on what is included in the transaction.
Chattels are moveable items that are not attached to the property in a permanent way. Common examples are things like pot plants, furniture, appliances, garden tools, cutlery & personal belongings.
Fixtures on the other hand, are items that are permanently attached (or fixed) to the property. Examples of fixtures include built-in shelves, ceiling fans, mailbox, solar panels, light fixtures and window coverings.
So, how do you determine whether an item is a chattel or a fixture? There are a few key factors to consider:
A basic interpretation of the difference between a fixture and a chattel is if the item is affixed to the land to any great extent, it is a fixture. If it is a freestanding movable item and rests on its own weight, it is presumed to be a chattel.
A really simple way to explain the difference to clients is: generally speaking, if the house was to be turned upside down and shaken: the items that fall out are chattels, and what remains are the fixtures.
Also, please note that if a fixture is specifically excluded in a contract of sale (i.e. a wall mounted TV & bracket) – the vendor must repair any damage caused by removing the fixture (i.e patch and paint the plaster once the wall bracket is removed).
Common “grey areas” that we see:
Air conditioning: Usually a fixture as the piping is fixed to the building .
Curtains: If the curtain rail is sitting on the hooks, it would technically be a chattel as the curtain and rail is not fixed (the hooks that the rail is sitting on is fixed).
Dishwasher: If the dishwasher will leave a gap when removed (i.e built in) then it will likely be considered a fixture; vs if it is free standing.
Pool equipment: These items are almost always chattels (net, pole, creepy crawly etc): make sure if your buyer wants these items to remain they are included in the “included chattels” section of the Contract.
Conclusion:
It is worth noting that disputes can arise over whether an item is a chattel or a fixture, and it is always best to clarify this in the sale contract to avoid any confusion or disagreements.
There is a section on page 3 of the standard REIQ contracts that allow parties to specifically include chattels, or exclude fixtures from a sale. We strongly suggest ensuring that any ambiguous items are specifically listed in this section, to avoid and turbulence in a transaction.
We have experience with chattels and fixtures with QLD conveyancing matters. Feel free to get in touch with us via the email below.
We look forward to continuing to help thousands of Queenslanders every year with their conveyancing!
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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.