The last thing you need on moving day is a battle over that
wonderful antique mirror in the master bathroom! Yet most buyers take very
little time to look at the "extras" in a home before they make an offer. As a
result, they may discover that the beautiful fixtures or high-tech stove they
thought came with the house have been loaded on the moving van heading to a new
home.
Both buyers and sellers should make a detailed list of items to be
included in the sale of the property and reach an agreement on disputed items
before closing. The most difficult part of a sale, however, can be reaching an
agreement on the definition of property. Everyone has a slightly different
concept of what should or should not be included. Many items can fall into
dispute particularly if they were specially ordered, custom-made, expensive or
have some personal significance.
To avoid confusion, general rules of
real vs. personal property have been established. Real property refers to all
the items which are part of the property and cannot be removed without causing
damage, anything which is immovable by law, or anything which is incidental or
appurtenant to the land. Personal property is simply anything which belongs to,
and leaves with, the homeowner such as tables or sofas. (see
checklist below)
Legally, the intention inherent in the manner
in which an article, fixture, or piece of equipment is attached to the property
is used to determine if the item is real or personal property. (You may be
familiar with rule of thumb that anything screwed in can be removed but items
which are nailed in place cannot.) Since the intention of the owner at the time
of installation is almost impossible to determine, it is important that
everything is in writing. The easiest way to avoid misunderstandings is for the
seller to make a list of their personal property. The following checklist covers
potential items of contention in every room in your home.
Once you have
completed the checklist and decided which items will stay and which will go
these should be noted in sale documents. Give a list of all personal property
items which will remain in the home such as chandeliers, built-in bookshelf, or
appliances to the closing agent. The Bill of Sale will then be signed at close
of escrow by the seller to avoid confusion.
It's also a good idea for
the buyer to make his or her own checklist. House hunters can save time by
taking inventory of fixtures and all property which might fall into dispute on
second viewing of a home or even at open houses.
Remember that both
buyers and sellers can negotiate on property transfer. A seller may be happy to
leave an ornate light fixture if the style is unsuitable for their new home.
Buyers who have their heart set on item are free to try to work in into the
asking price or condition or sale. Now who wants the Elvis lawn ornaments?