Understanding Fixtures and Chattels: What’s included when you sell a property in NSW?

In New South Wales, the sale of real property typically includes certain items, which are classified as either fixtures or chattels. Understanding the distinction between these two categories is crucial for both buyers and sellers to ensure clarity in property transactions. In this article, we explain the distinction and importance of contractual certainty in avoiding potential disputes.

Fixtures vs. Chattels

Fixtures are items that are attached to the land or building in such a way that they become part of the property. Common examples include built-in wardrobes, kitchen cabinets, and light fittings. The general rule is that fixtures are included in the sale of the property unless specifically excluded in the contract.

Chattels, on the other hand, are movable items that are not permanently attached to the property. These include furniture, appliances like refrigerators, and personal belongings. Chattels are not automatically included in the sale unless they are explicitly mentioned in the contract.

Determining Factors

The distinction between fixtures and chattels can sometimes be ambiguous. The following factors are typically considered:

1. Degree of Annexation: How permanently is the item attached to the property? The more permanent the attachment, the more likely it is considered a fixture.
2. Purpose of Annexation: Was the item attached to enhance the property or for the better use of the item itself? If the former, it is likely a fixture.

Contractual Clarity

The Conveyancing Act 1919 and the Conveyancing (Sale of Land) Regulation 2022 in NSW require certain disclosures and documentation in the contract for sale. It is crucial for the contract to clearly specify which items are included in the sale to avoid disputes. This includes listing any chattels that are to be included and any fixtures that are to be excluded.

Practical Implications

In practice, whether an item is included in the sale is often determined by the terms of the contract. Both parties should ensure that the contract clearly outlines what is included in the sale. This clarity helps prevent misunderstandings and potential legal disputes.

This is why it is important to ensure that:

• If you are a seller, you speak to your lawyer about exactly what you intend to include in the sale and what items you wish to take with you when you have sold the property. Your lawyer can then ensure the contract is accurate and reflects your intentions
• If you are a buyer, you should speak to your lawyer about what items have included in the contract vs what you thought was included when you inspected the property. If there are any discrepancies, you should raise these with your lawyer

Get in touch with us

If you have any questions about what is included/excluded from your purchase/sale, then you have come to the right place. Please get in touch with us using one of the below buttons or alternatively, visit our Buying a Property Information Centre or Selling a Property Information Centre to get more information on our conveyancing services or to simply get an instant quote.

We’re here to help you every step of the way!