Furniture and Fixtures

Picture this.  It’s almost moving day.  It’s your first home.  Your agent explains the purpose of this last visit is to simply make sure the home has been left reasonably clean and that it has been maintained as it was when you viewed it initially.  It’s been a lot of work to get to this point.  There were offers, counter-offers, the loan process, escrow; a barely-understandable whirlwind experience at best.  You are relieved it’s almost yours!  When you open the door you are shocked that the sellers have removed light-fixtures, ceiling fans, one of the medicine cabinets and even the stair rail!  Trust me, it happens!  

When selling you home, things attached to the structure (other than personal items) are considered fixtures.  They always remain with the house unless specifically excluded in the listing and sales contract.  Malibu lighting, yard lighting, outdoor speakers, installed water filtration, and anything integral to the functioning of the catchment system is also expected to stay.  Spas, Jacuzzis, portable saunas, and furniture built to fit specific spaces should be individually addressed.  It is critical to be very clear from the beginning what things are EXCLUDED.  While appliances and window coverings are commonly included in a sale, buyers sometimes request that furniture, lawn equipment and even an adjacent lot be included.  Including such items can be tricky, especially if a loan is involved.  Appliances are considered integral to the functioning of the home.  Including them in a loan is not a problem.  

Mortgage companies, will not, however, loan money for furniture.  Most home mortgages loans only allow a single parcel to be held as security for the mortgage.  It is possible to include these extras but doing so requires special care in drafting the contract.  It’s really best to handle these things outside the sales contract if possible.  Including them unnecessarily complicates an already complex transaction.  Consider, for example, how much worse the situation above might have been if the buyers had also included furniture!