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“Where Did the Chandelier Go?”

By
Real Estate Agent with Charles Rutenberg Realty

The buyer thought that it was included. The seller thought it was clear that it wasn't. But where the beautiful crystal chandelier once was, now there are just a couple of small crooked wires. The closing being just hours away, this is now an unpleasant situation for everyone involved. It could have been avoided. The real estate law recognizes two types of property: real and personal. Simply put, real property is the land and everything permanently attached to it. This would include the house, trees, fence, etc. Personal property is anything not permanently attached. This would include the furniture, houseplants, personal belongings, etc. Unless the contract specifies differently, all real property is included in the sale, and all personal property is excluded. So, which category does that chandelier fall into? It is considered a fixture. Before it was first installed in the home, it was sitting in a box on a shelf of the local home improvement store. Because it was not attached to anything, it was personal property in the eyes of the law. Once the homeowner bought it, and installed it in the ceiling with nuts and bolts, the law considers it permanently attached to the home, and thus a part of the real property. Therefore, if the contract did not specifically mention it, the chandelier would be included in the sale. The same is true for all other fixtures. If something is attached to the house with screws, nails, glue, cement, etc., it is treated as a part of the real property. While this may seem pretty straightforward, it can be tricky. Some things can appear to be permanently attached when they are really not. A microwave can appear to be built into the cabinet, when it's actually just sitting on a tight fitting shelf. The window coverings are usually not permanently attached to the home either (the hardware that is installed on the wall is, but the drapes are usually not). And which appliances are included and which are excluded can also be confusing. Of course, there is no law that says personal property cannot be included in the sale or that fixtures cannot be excluded. Buyers and sellers just have to write it into the contract. If you are a buyer, and are not sure whether something is a fixture or not, ask. If you want it included, have your Realtor write it in your offer. If you are a seller and want a fixture excluded, in order to avoid any confusion it is best to remove the item from the property before you even put the house up for sale. If that is not possible, make sure that the listing agreement specifically states that it is excluded from the sale. When an offer is received on your house remember to make sure that the fixture is again excluded on the contract. If the buyer has not specifically excluded that fixture in the offer they expect it to remain. Having clear communication between the parties involved, and having everything in writing, is the best way to avoid unpleasant situations at closing.

Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Dorinda - I always counsel Sellers to remove any "fixture" they plan to take with them BEFORE the property goes on the market, or at worst, ensure it is clearly specified in contract.

Jan 01, 2007 03:20 AM
Mark Flanders
Consulting - Silverdale, WA
Dorinda, this is a great topic. There is alot of confusion between buyers and sellers. The seller feels they purchased the item separately from the house and the buyer thinks it's attached to the house. How did things turn out on your transaction?
Jan 01, 2007 03:27 AM
Jim Lee, REALTOR, CRS, ABR
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

"Once the homeowner bought it, and installed it in the ceiling with nuts and bolts, the law considers it permanently attached to the home, and thus a part of the real property."

That's not exactly correct Dorinda.

The intent of the person that put a fixture somewhere, i.e. the chandelier in question, also comes into play.

Did the person that installed the chandelier intend for it to become a permanent part of the real party or did they merely install it for their personal use and enjoyment, intending to remove it when they left the property (or sold it in this case)?

"Courts generally have used four "tests" to determine a fixture or not:
1. Intention - Did the party who originally installed the item intend for it to be removed in the future?
2. Method of attachment - How permanently is it attached and can it be removed without damaging the property?
3. Use - Is the item being used as personal property or real property?
4. Agreement - Have any parties agreed in writing whether an item is a fixture or personal property?"

"an interesting case which was decided by the District of Columbia Court of Appeals back in l982

  • actual annexation, according to the nature and use of the article;
  • its adaptation to the use for which it was annexed, and
  • the intention that it should be a permanent accession to the realty."
  • That's what they ruled a fixture is; clear as mud huh? ;-) 

    It's always better for a seller to remove whatever they intend to remove beforehand like a chandelier, and replace it before a buyer ever sees it and starts thinking how nice it looks and how much they're going to enjoy it.

    Unfortunately we don't work in a perfect world and there are no crystal clear guidelines as to what a fixture is or is not.

    Jan 01, 2007 03:44 AM
    Judy Kincaid
    Tampa, FL
    Dorinda---I staged a house once that had a fabulous chandelier.  I commented to the seller how exquisite it was and asked if she was going to look for one similar to put in her new home.  She said that since she and her husband installed that one, they were going to take it with them.  The home was already on the market so I adviced her to take it down immediately and replace it with the original chandelier.  Her response to me was "Oh no, we are going to leave it up until we get ready to move because the house shows better with it".  I explained to her that it could cause problems because the potential buyers were envisioning themselves in that lifestyle with THAT particular chandelier.  She still wouldn't budge.  However, I found out from the realtor that the gorgeous chandelier was written into the contract and had to stay with the house afterall.
    Jan 01, 2007 04:00 AM