As a result of improvements in home-technology, it is increasingly important for purchasers and sellers in residential real estate transactions to clearly define what articles should be included or excluded in their contract of sale.
Personal Property is all property which is moveable in nature and whose removal will not cause damage to the real estate to which it is attached. Unless otherwise indicated in the contract, personal property is excluded from sale.
Conversely, a fixture is permanently attached to the real estate. Fixtures become part of the realty and are conveyed with the real estate upon its sale. The classic example of a fixture is a chandelier/lighting fixture which, if not excluded from the contract, will be conveyed with the real estate upon its sale.
Traditionally, televisions were considered items of personal property and were not included in the sale. However, as technology improves, and individuals continue affixing flat screen TV’s to their walls, or incorporating speakers into their ceilings, a question arises as to whether the ceiling speakers, and flat screen TV’s, constitute “fixtures.” If considered a fixture, the flat screen TV is included in the sale.
Instead of walking a tight rope around the issue of whether a flat screen TV is a fixture, or personal property, parties should contract around this issue and specifically include or exclude articles of property from the contract. Therefore, parties should always be clear and inform their attorney and broker what articles of property should be included or excluded in the contract of sale.
7 Comments
Great post Neil!
Brings up the question of what happens when tenants attach flat screens to the wall. Do they have to have pre- approval what about when they move out and does it then belong to the landlord?
In response to Julie Muss’ question: Tenants should ask in writing & receive permission in writing from the landlord before attaching a flat screen TV to a wall in an apt they’re renting. They should also be prepared to pay to have the wall repaired when they leave, if they take their TV & remove it from the wall. They should video/photo the wall prior to installing the TV, & after having it repaired. If a tenant leaves a TV or the holes in the wall after a TV’s removal, the landlord may remove money from tenant’s deposit to cover damages.
Why would a landlord be entitled to a flat screen, surround sound speakers hanging from the wall or a lighting fixture, a fancy shower head, etc as long as the tenant restores the apt to it’s original condition upon moving?
Nice room
Developments in technology will always bring new challenges, so as you say it is better to have all these details put in the contract.
I came here thinking something else, but this interested me regardless. Interesting stuff!