Reviewing the Agreement of Purchase and Sale: What is the Difference between a Chattel and a Fixture

This is the first post in our series related understanding the Ontario OREA version of the Agreement of Purchase and Sale. This would be Form 100 or 101. 

An important part of the Agreement that may cause confusion is related to what is a Chattel and what is a fixture. These sections are important for everyone. They give great insight into the property and can cause disappointment when something that was expected to be left at the home after closing isn’t. 

In Ontario, a chattel is a movable personal property, while a fixture is an item that is attached to a property in a way that it becomes a part of the property. The difference between chattels and fixtures is important in real estate transactions because it can impact who owns certain items in the property.

Chattels are generally considered personal property and are not included in the sale of the real estate property. Examples of chattels include furniture, appliances, and personal belongings. When purchasing a home, the buyer and seller can negotiate which chattels will be included in the sale of the property, and a separate agreement may need be drafted to transfer ownership of those items.

Fixtures, on the other hand, are considered to be part of the real estate property and are generally included in the sale of the property. Examples of fixtures include built-in appliances, light fixtures, and heating and cooling systems. However, there can be some gray areas in determining whether an item is a fixture or a chattel, and the determination can depend on various factors such as the method of attachment, the intention of the parties, and the purpose of the item.

If there is a dispute over whether an item is a chattel or a fixture, it can be resolved through negotiation or by seeking legal advice. It is important to clarify these issues before completing a real estate transaction to avoid any misunderstandings or disputes down the line.

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