Fixtures : May We Keep The Chandelier ?

By
Education & Training with (retired) TN LIC# 290452

                                fixtures

A fixture is personal property that's been appended to a building, property or some land in such a manner that it actually becomes part of the real property.

Usually, it's considered that if an item has been included as a permanent part of a building it's considered a fixture, like plumbing.

Laws govern the distinction.

We have what we call legal test for determing whether or not an item is a fixture or personal property.

These tests may include:

1. How permanent is the thing that's attached to the property? Usually this is referred to as the method of annexation.

2. How are they using the item? Are they using it as personal property or real property? This is sometimes called adaptation to real estate.

3. Have your seller and buyer agreed as to whether or not an item is personal property or real estate in the offer to purchase? This is called the test by agreement.

What kinds of experiences have you had with the legal tests for fixtures or personal property, and can you think of any other tests for determining whether or not an item is a fixture or personal property?

 

Posted by



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Tennessee Shelby County Memphis
Groups:
Realtors®
Memphis
Tennessee
Education
Realtor® World
Tags:
david saks

Spam prevention
Show All Comments
Rainmaker
328,953
Sara Homan
Coldwell Banker Ellison Realty 352-209-4044 - Ocala, FL
Realtor, Homes, Farms & 55+
When you sit down to list a property you should ask about fixtures and anything that is attached.  You should disclose it on the listing so there are no challenges and hard feelings when contracts are drawn up or at the closing table.  Make sure when a contract comes in that the item (s) are excluded in writing.
Apr 26, 2008 09:16 PM #1
Rainmaker
162,947
Lorinda Ward
Keffer Realty - Norfolk, VA
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach
I have had buyer's ask for things that was clearly personal property, we just try to negotiate it in the contract, the seller can either say yes or no.  It does not hurt to ask.
Apr 26, 2008 09:22 PM #2
Anonymous
Anonymous

The best way to avoid confusion is to have the seller remove anything that has the "sentimental" value that is all too often brought up prior to listing their home.   (Grandmas light fixture can be replaced with one from Home Depot or such before a buyer sees it.)

 

Apr 26, 2008 10:56 PM #3
Rainer
336,110
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC
Yes I agree if they want to keep it then it needs to be moved prior to showings. No confusion that way and no arguments later!
Apr 27, 2008 01:35 AM #4
Rainmaker
1,570,074
David Saks
(retired) - Memphis, TN
Disclosure is best, Sara. Thanks.
Apr 28, 2008 05:38 AM #5
Rainmaker
1,570,074
David Saks
(retired) - Memphis, TN
Your right, Lorinda. Asking is good. Thanks.
Apr 28, 2008 05:39 AM #6
Rainmaker
1,570,074
David Saks
(retired) - Memphis, TN

Less headache, right Laura? Thanks.

Apr 28, 2008 05:41 AM #7
Rainmaker
2,189,557
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Take anything out of the house that could be a bone of contention, and then you don't have that problem.  I've had sellers want to remove shelving and mirrors that are attached to the walls or dig up plants in the back yard. That's why it's imperative to have a "fixture" talk when you're taking the listing. Don't ever say an item is negotiable because as soon as you say that, the buyer will want it and want it for free.


Apr 28, 2008 08:27 AM #8
Rainmaker
1,570,074
David Saks
(retired) - Memphis, TN

Elizabeth, usually, if it's not bolted down the seller moves with it. There are cases where seller assisted closing is reduced by the commensurate value of the item or items the buyer is requesting. That works out equitably in some situations and can always be used to affect the bargaining position or outcome of either side. Hypothetically, or by surmise, the buyer gets the beautiful heirloom chandelier and the seller reduces the closing costs by 4000 dollars. In effect, the buyer is purchasing the item prior to closing settlement by virtue of the adjustment. Is it reflected on the GFE or the HUD-1? No, because seller assisted closing is readjusted prior to closing by the value of the items the buyer wishes to retain, and which they've agreed upon prior to closing, which now gives the buyer the splendid experience of serendipitous elation because they now own a magnificent chandelier. Can the buyer roll it over into financing? Not as a chandelier. The additional funds needed to close by the buyer are increased by 4000 dollars, and the buyer will either request, or need, an additional 4000 dollars from the lender unless they don't need the financing; but where does it say that the additional money is for a chandelier? It can't and it won't. Now we start to get into ethics, RESPA, etc...and we'll put that aside for another time. It has to be in the contract prior to closing, and 'free' might not fair well at closing. Personal property, in this case, may become a powerful bargaining tool. All kinds of weird things can happen. In the extreme, it could increase the buyers debt to income ratio if the seller's closing is rolled back in to the buyer's loan.

                                            saks

Apr 28, 2008 02:26 PM #9
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,570,074

David Saks

May God Bless You, Always. David
*
*
*
*
Spam prevention

Additional Information