One of the areas in a real estate transaction where there are frequent disputes is the section on Fixtures. A fixture, by definition, is anything that is “fixed” (physically attached) to the property. That includes sinks and faucets, built-in appliances, light fixtures, towel bars, in-ground plants, awnings, shutters, etc. The list is long.

At first glance it would seem simple enough, but there are grey areas. For example, in our area window coverings (drapes) are listed in the contract as being fixtures. Also, sometimes appliances that are not “fixed” but are housed in a built-in cabinet that was specially built for that specific appliance will be considered a fixture.

Misunderstandings arise when a seller wants to keep a cherished fixture such as a chandelier or wall sconces that were wedding presents, custom made drapes that match the sofa they are taking with them, or the plasma TV that is hanging on the wall and hard wired to the speakers. When I take a listing, I always advise the seller to remove and replace any fixtures they want to keep before any potential buyers see the property. That prevents any misunderstanding. However, some sellers insist on leaving them because they look good, but specify in the listing contract that they are not included (or put “not included” signs up on them.) The problem is that it really doesn’t matter what the listing contract says or what the posted signs say. In a dispute, the contract rules, and if these exclusions are not listed in the contract, they are not excluded.

I sold a house a couple of years ago where my buyers allowed the sellers to “rent back” for a period after escrow closed. The custom drapes (worth about $3000) were there at close of escrow, but when the buyers arrived to take possession they had been replaced by cheap, flimsy drapes that were not even close to the quality of the originals. Fortunately we had a $5000 security deposit for the rent back (and photos of the original drapes), but the sellers were furious because their agent had never explained to them that the window coverings were included.

On another occasion the seller had removed the lamp shade on the dining room ceiling lamp, the same lamp shade that my buyers had fallen in love with when they decided to buy the house. Their argument was that the shade was removable, but we argued back that it clearly was part of the ceiling fixture. The seller finally agreed to give the buyers a reasonable sum of money so they could buy another lamp shade that was special to them and everybody ended up happy.

The moral of the story is to hire a professional agent who can avoid potential problems and possibly save you money by advising you in advance about details of the transaction that might not be obvious. Moral #2 is to read the fine print. As soon as we get the property prepared and on the market I hand my sellers a purchase contract, ask them to read it carefully, and schedule an appointment with them to review the contract together before we even look at any offers. This way, they will be alert to situations that may arise and could easily be forgotten in the excitement of hearing and responding to the offers.