Real Estate Term of the Week: Fixtures
Lydia Taylor June 19th, 2007
- Fixture-An item of personal property which, through its attachment to, or association with, real estate, loses its identity as personal property and becomes real property.
Strangely enough, fixtures that are taken from the home by the seller can be one of the biggest sticking points in a real estate transaction. I was involved with one a few months ago where my home buyer really liked a wrought-iron fence gate, and was willing to walk on the deal when it was discovered the home owner was taking the gate and replacing it with a ‘normal’ one!
There are 3 tests to determine if the item is personal property, which means you will take it when you move; or if it is a fixture (real property), which means it stays with the home.
- Annexation: The method by which the thing in question is attached. (i.e. is it attached by nails, screws, concrete, bolts, etc.?)
- Adaptation: The item is designed for that property.
- Intention: Did the owner (seller) intend for it to stay?
If the item is bolted in, designed for the house, and it was not intended to move, then it most certainly is a fixture. An easy example is a ceiling fan. The fan is screwed in the ceiling, it probably matches the house, and it would be a pain in the rear to remove it. This makes it a fixture.
If you are a home seller and intend to take a fixture with you, make sure all parties know that up front. Common examples are chandeliers, shelves which appear to be ‘built-ins’, door knockers, and yes, fence gates.
- Real Estate Terms
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