Purchasing a house is an exciting process but it’s not without potential confusion regarding what is and what isn’t included in the sale. Disputes can arise when considering whether chandeliers are part of the sale or not, mainly down to differing perceptions between the seller and buyer on personal property and real property.
Chandeliers are generally included in the sale of a house, though sometimes there are disagreements between the seller and buyer when it comes to determining what is real property (and therefore included) and what is personal property (and therefore not included unless agreed). Some people consider chandeliers to be real property, while others consider them to be personal property, so if they are to come with the house, it’s important that they are clearly included in a Bill of Sale to avoid misunderstandings or disputes at a later date.
Whenever there is any uncertainty around an item, such as a chandelier, it’s always best to make inquiries before completing the sale and to get in writing whether the chandelier is included or not. This will prevent unwanted surprises, avoid potential disappointment or anger, and make the sale process as smooth and straightforward as possible.
Determining real property versus personal property
When purchasing a home you are purchasing real property, meaning something that is attached to the land or forms part of the land. Real property can also cover items deemed to be immovable by law and generally includes items that can’t be removed from the property without damaging it, also referred to as fixtures.
On the other hand, personal property refers to movable items that can be taken out of the property, such as ornaments, appliances, and items of furniture which are not attached to the property. Personal property can also sometimes be referred to as chattels (or chattels personal) and is not included in the sale of a house unless there is an agreement between the seller and buyer to include them.
For the most part, the difference between real property and personal property may seem fairly straightforward. However, it can become confusing with items such as chandeliers which some people may view as real property and therefore part of the home and included in the sale, while others may consider them to be personal property and therefore not included in the sale.
It is possible for some chattels (personal property) to become fixtures (real property), for instance, fences or a chandelier. A chandelier purchased from a store is personal property until the time it is hung up, as a chandelier bolted to the ceiling would be considered a fixture and therefore automatically part of the sale unless specifically excluded in the sale agreement.
There are criteria in law for deciding whether an item is personal property or real property. These criteria revolve around the intention behind the way in which the item is fixed to the property.
However, it’s not always easy to determine the owner’s intention during the period of fixing the item in the home. Therefore it’s important that personal property is firmly established during the sale period, with a written agreement of what items are to be included in the purchase and what items will not be included.
Including chandeliers in a Bill of Sale
Since it’s not always clear to both parties whether chandeliers are personal property or real property, if the buyer and seller agree for them to be included in the property purchase then it is best to include the chandeliers on a Bill of Sale, which is a document that transfers ownership of personal property from a seller to a buyer. The buyer has to sign the Bill of Sale as part of completing the house purchase, so it will be evident whether chandeliers are included or not.
If they are not included but the buyer wants them to be, they could negotiate with the seller to alter the Bill of Sale to include them before signing. A reverse is possible too, with a seller specifically stating the chandelier is excluded when a fixture would normally be included.
A signed Bill of Sale provides peace of mind to both parties, making it clear what is and what isn’t included; not to mention the sale can’t be disputed if either party changes their mind later on.
A Bill of Sale avoids any confusion or misunderstandings as to what personal property is included or excluded in the sale of a house. A Bill of Sale is a useful document for listing other lighting fixtures too where there may be uncertainty regarding whether they are personal or real property, as well as items such as radiators or inbuilt bookshelves.