A fixture refers to a perpetual part of a house or apartment. As pointed out by (Weintraub, 2019), fixtures are sold with the house. As such, a seller cannot remove fixtures prior to selling the apartment to the buyer. A fixture could also be defined as a decoration or equipment that is attached to the property. As such, according to (Gassett, 2015), fixtures are usually regarded as part of the property hence; they normally go to the buyer with the rest of the property. Therefore, in relation to my apartment, some of the fixtures include bookshelves, light fixtures, wall-to-wall carpeting, ceiling fans and mirror. On the other hand, personal property include clothes, artworks, and home appliances such as microwave, cars and furniture. The items such as bookshelves and ceiling fans are considered fixtures because they have been mounted permanently in the apartment. Therefore, it implies that they are part of the apartment hence cannot be removed. In addition to that, the mirror is also a fixture in my apartment. In most cases, a mirror could be considered as a personal property but in this case, it is a fixture because it is mounted on the wall. Therefore, due to the manner in which it has been fixed in the apartment, it implies that it is part of the apartment thus cannot be removed. The same applies to wall-to-wall carpeting and light fixtures. In relation to personal items in my apartment, the mentioned items could be described are personal property because they are movables. This implies that they are not permanently fixed hence can be removed when selling or renting an apartment.
Distinguishing Fixtures and Personal Properties
When purchasing or selling an apartment, it is crucial to comprehend the various types of property that are likely to affect the purchase and sale of real property. As such, comprehending the difference between a fixture and a personal item is significant when purchasing a new home or investing in real estate. Additionally, prior to buying a piece of real estate, buyers should always take stock of fixtures and personal items that they would like to be included in the property’s sale. Furthermore, buyers are usually encouraged to either write down or photograph the items that should be included in the transaction. According to (regencyrealestate.com, 2017), conflicts usually arise in real estate when it comes to distinguishing between fixtures and personal properties. This is normally the case because what a buyer might believe to be a fixture and should be part of the apartment might be considered otherwise by the seller. Therefore, as shared by (Weintraub, 2019), there are a number of ways of determining whether an item is a fixture or not. One such way is the item’s method of attachment. When an item is affixed permanently to a surface such as the wall, ceiling or the floor using glue, cement or nails, then that item is a fixture. Secondly, adaptability is the other way of determining whether an item is a fixture or not. This implies that if an item is an integral part of the home, then it cannot be removed. A good example of such an item is the floor. In some instances, a refrigerator could be considered a fixture in cases where it fits inside a specified space.
Additionally, the relationship of the parties determines whether a property is a fixture or a personal item. As highlighted by (Weintraub, 2019), in cases where the conflict is between the tenant and property owner, the tenant usually win while in cases where the dispute is between the buyer and the seller, the buyer usually wins. This therefore implies that the items identified by the tenant or the buyer as fixtures will be considered as such. The other way of distinguishing a fixture is based on the intention of the party. This refers to items attached or installed with the intention of making them permanent. Such items are fixtures. Examples of such items include built-in bookcases. The other way of distinguishing between a fixture and a personal property is based on the agreement between the buyer and the seller. Therefore, in this case, the purchase agreement will provide details regarding the definition of a fixture and what is not. As such, the items that will be included in the sale will be highlighted. The agreement is useful because it usually reduces the occurrence of disagreements and disputes. On the other hand, personal property could be defined as a movable item. This is because personal properties unlike fixtures are not usually fixed permanently to a specific location. According to (Kagan, 2019), personal items are normally viewed as assets because they could be taken into consideration by lenders when individuals apply for mortgage or other types of loans.
Furthermore, in as much as distinguishing whether an item is a fixture or a personal item could be challenging at times, it should be noted that items that can be moved easily are personal items while those that are immovable are fixtures. However, in some instances, either an item could be a fixture or a personal item based on its positioning. A good example of such an item is a hot tub. When a hot tab is resting on a deck and minimally attached to the home, it could be treated as either a fixture or a personal item. As such, distinguishing such an item could be attained by analyzing the intention and the purpose of the attachment.
Issues that arise during real estate transaction
Issues usually arise during real estate transaction due to the confusion that exist between items that are considered to be fixtures and those defined as personal items. According to (Gassett, 2015), many consumers in most occasions do not have an idea of what is considered a fixture and a personal property. As such, real estate agents should always offer the appropriate definition distinguishing the two items in order to avert issues. However, this is not always the case because majority of real estate agents usually fail when it comes to distinguishing the two items thus, causing conflicts during transactions. Additionally, sellers should always include the fixtures in the agreement as a way of avoiding issues. Furthermore, the confusion of personal properties and fixtures usually cause issues during the real estate transaction. This is usually the case when buyers view the apartment when items of the seller are still in the apartment. They could consider some of the properties as fixtures while in the actual sense they are personal items. In such scenarios, buyers usually get disappointed when after purchasing the property they miss certain items in the apartment. Additionally, there are a number of items that usually cause issues during real estate transactions because of varying definition between what one individual considers to be either a fixture or a personal item. One of such items is the window treatments. In most cases, individuals consider drapes and curtains as fixtures yet they are personal properties thus, do not stay with a home. On the other hand, blinds and rods are fixtures because they are attached and therefore they usually remain with the property. An item such as a swing set could be either a fixture or a personal item. In my case for instance, I had the difficulty of pointing out whether the mirror was a fixture or a personal item. This is because I had fixed it for purposes of easing its utilization. However, I had to let it be part of the apartment because it was immovable. In addition to that, it was also a challenge distinguishing whether some home appliances were fixtures or personal items. This is because some had been fixed in a manner that complemented the general outlook of the apartment. However, we had to agree on distinguishing some of the items that had issues with the buyer in order to avert disputes.
Consequently, the other issue that could arise is delays. Delays could occur due to the ever-changing demands of the buyer. A buyer could come up with additional requirements that should be met prior to closing the transaction. In addition to that, another issue is the absence of a plan. A plan is crucial in a real estate transaction because it aids in guiding the negotiations. As such, its absence hinders a successful transaction because certain key features may not be addressed adequately.
References:
Gassett, B. (2015). What's a Fixture vs Personal Property. Retrieved from https://www.maxrealestateexposure.com/whats-a-fixture-vs-personal-property/
Kagan, J. (2019). Personal Property. Retrieved 17 June 2020, from https://www.investopedia.com/terms/p/personalproperty.asp
regencyrealestate.com. (2017). What is Considered a Fixture in Real Estate? - Regency Real Estate Brokers. Retrieved from https://www.regencyrealestate.com/2017/03/02/what-is-considered-a-fixture-in-real-estate/
Weintraub, E. (2019). 5 Tests to Determine What a Fixture Is and Is Not in Real Estate. Retrieved from https://www.thebalance.com/what-is-a-fixture-1798556
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