Posted by:
Comments:
Post Date:
Chattels are movable items included only if the contract lists them. Typical chattels include freestanding appliances, furniture, rugs, and potted plants. Fixtures (built-in appliances, taps, lights, sheds on foundations) form part of the land. Avoid disputes by listing inclusions/exclusions clearly in the contract’s chattels schedule.
Let’s break down what you need to know about chattels in property sales and how to protect your interests.
What Are Chattels?
Chattels are moveable items that are not permanently attached to the property. Think of them as items that can be picked up and moved without causing damage to the property structure. In contrast, fixtures are items that have become permanently attached to the property and are considered part of the real estate itself.
The key test is usually the “degree of attachment” – how permanently is the item fixed to the property?
Common Examples of Chattels
Typically Included as Chattels:
- Freestanding appliances: Refrigerators, washing machines, dryers (unless built-in)
- Furniture: Sofas, dining tables, beds, wardrobes
- Removable items: Rugs, artwork, mirrors that hang on hooks
- Garden items: Pot plants, outdoor furniture, portable garden sheds
- Window treatments: Curtains and blinds (though this can be disputed)
- Portable heaters: Electric or gas heaters that plug in or connect via flexible hose
Items That Are Usually Fixtures (Part of the Property):
- Built-in appliances: Dishwashers, ovens, cooktops installed in cabinetry
- Attached items: Built-in wardrobes, floating shelves, wall-mounted TVs
- Lighting: Ceiling fans, pendant lights, chandeliers
- Plumbing fixtures: Taps, toilets, built-in baths, shower screens
- Structural elements: Deck railings, built-in seating, pergolas
- Garden fixtures: Established trees, built-in garden beds, irrigation systems
The Grey Areas That Cause Disputes
Some items fall into disputed territory where the classification isn’t immediately clear:
Window Treatments
Curtains are generally considered chattels, but fitted blinds can be argued as fixtures. The method of attachment often determines the classification.
Hot Water Systems
These are typically fixtures due to their connection to plumbing and electrical systems, but portable systems may be considered chattels.
Storage Sheds
A shed on a concrete foundation is likely a fixture, while a portable shed sitting on the ground could be a chattel.
Garden Items
Established plants and trees are fixtures, but potted plants are chattels. The distinction can become blurry with large potted specimens that have been in place for years.
How Chattels Are Handled in Property Contracts
The Standard Contract Approach
Most property sale contracts include a chattels clause that specifically lists what chattels are included in the sale. This is typically found in the contract as:
- Schedule of Chattels: A detailed list of moveable items included in the purchase price
- Exclusions: Items specifically excluded from the sale
- “As is” conditions: Stating that chattels are sold in their current condition without warranty
What Gets Included by Default
Unless specifically excluded, certain items are commonly assumed to be included:
- Light shades and globes
- Fixed floor coverings (though these are technically fixtures)
- Door keys and garage remotes
- Stove/cooktop if built-in
- Basic garden items like hoses and sprinklers
The Legal Framework
Caveat Emptor (Buyer Beware)
In property law, chattels are generally sold “as is” without warranty. The seller isn’t required to guarantee their working condition, only their presence at settlement.
Contract Specifications Rule
What’s written in the contract takes precedence. If there’s a dispute about whether something is a chattel or fixture, the contract terms will usually determine the outcome.
Reasonable Person Test
Courts often apply a “reasonable person” standard – would a reasonable person expect this item to be included with the property?
Common Disputes and How to Avoid Them
The Missing Air Conditioner Scenario
The Problem: Seller removes a split-system air conditioner, claiming it’s a chattel.
The Reality: Most split systems are considered fixtures due to permanent installation and connection to electrical systems.
Prevention: Specifically list air conditioning systems in the contract.
The Garden Shed Debate
The Problem: Disagreement over whether a large garden shed is included.
The Reality: Depends on construction and attachment to foundations.
Prevention: Clearly specify inclusion or exclusion of all outdoor structures.
The Curtain Controversy
The Problem: Expensive custom curtains removed by seller.
The Reality: Window treatments occupy a grey area in chattel law.
Prevention: List all window treatments specifically in the chattels schedule.
Your Conveyancer’s Role in Chattel Matters
At Red Door Conveyancing, we help protect your interests by:
During Contract Review
- Examining the chattels schedule, if provided, to ensure it matches your expectations
- Identifying missing items that you assumed would be included
- Clarifying ambiguous descriptions that could lead to disputes
- Recommending additions to protect valuable items you expect to receive
Negotiation Support
- Suggesting reasonable inclusions based on standard practice
- Advising on negotiation strategies for disputed items
- Drafting clear contract amendments to avoid future confusion
Pre-Settlement Inspection
- Verifying chattel presence during final inspections
- Documenting any discrepancies for resolution before settlement
- Coordinating with agents to resolve last-minute issues
Tips for Buyers
Be Specific in Your Offers
Don’t assume anything is included. List specific items you want included:
- “All window treatments currently installed”
- “Outdoor dining setting on rear deck”
- “Garden shed located in rear yard”
Take Photos During Inspections
Document items you expect to be included, particularly in grey areas like garden features or storage solutions.
Ask Questions Early
If you’re unsure about an item, ask your conveyancer to clarify its status before signing the contract.
Tips for Sellers
List Exclusions Clearly
If you’re keeping certain items, exclude them specifically:
- “Excluding antique chandelier in dining room”
- “Excluding all pot plants and outdoor furniture”
Be Realistic About Fixtures
Don’t plan to remove items that are clearly fixtures – this could lead to legal issues and additional costs.
Consider Negotiation Value
Sometimes including certain chattels can add perceived value to your property without significant cost to you.
Special Considerations
Leased Equipment
Some appliances might be leased rather than owned. Check:
- Hot water systems
- Solar panels
- Security systems
These arrangements need to be disclosed and transferred or terminated appropriately.
Damaged Chattels
If a listed chattel becomes damaged between contract signing and settlement:
- The seller may need to repair or replace it
- The contract terms will determine responsibility
- Your conveyancer can advise on remedies available
Warranty Considerations
While chattels are sold “as is,” some situations may provide recourse:
- Misrepresentation of condition
- Hidden defects not disclosed
- Items that don’t match contract descriptions
The Settlement Day Reality Check
On settlement day, the property should include all chattels listed in the contract. If items are missing:
Immediate Action Required
Your conveyancer can:
- Hold back settlement pending resolution
- Negotiate compensation for missing items
- Arrange for replacement or repair
Documentation Is Key
Photos from your pre-settlement inspection become crucial evidence if disputes arise.
Red Door Conveyancing’s Approach
We believe prevention is better than cure when it comes to chattel disputes. Our comprehensive approach includes:
- Detailed contract review
- Clear communication with all parties about expectations
- Thorough pre-settlement inspections to identify issues early
- Quick resolution strategies when problems arise
Needs professional and reliable conveyancers? Contact Red Door Conveyancing on 03 8456 6797 for smooth and faster transactions.
