The grey area
The last thing that a buyer does before closing is take a walk through the house or condo. Usually, the buyer and buyer’s agent are there. Sometimes the seller or seller’s agent is there, too. The purpose is to check that property has been prepared for closing. Things to check are whether the heat and hot water are working, and that the property is vacant and clean. Everything should be working that was working at inspection. Nothing should be damaged by the sellers or their movers on the way out. Things that should be gone are gone; things that should stay are there and work.
That seems simple enough. But it isn’t always.
Sam wrote about mishaps in the garden found on walk-through. He mentioned that the Purchase and Sales Agreement needs to be specific about real estate (realty) and chattel (personalty) so that what should stay will stay and what should go will go. I create a list of grey-area items that are staying and going. I give it to the seller’s side after home inspection. This gets the discussion done and also creates a neat list for the attorneys to incorporate into the Purchase and Sales Agreement.
Some definitions:
Real estate is the land, what grows out of it, and everything built on it. The house or garage and anything affixed to the house or garage is real estate. All the appliances that are hard-wired in are real estate (light fixtures, built-in dishwashers, in-the-wall air conditioners.) The stove stays, too. Built-in bookshelves are real estate. Furniture built for a specific space is also real estate.
Chattel is anything that can be unplugged and moved, or is not attached to the house. This includes refrigerators, washers, and dryers. Even though gas dryers are connected via the gas line, they are typically considered chattel.
Grey-area items should be listed and discussed. Buyer and seller should agree about what is staying and what is going.
Here are some common ones:
Curtain rods are not attached to the house, but their mountings are. Both should either stay or go. Some shades are attached; some are only attached by their mountings. Some shades and curtains were designed for the space, do they stay?
Play equipment is sometimes cemented into the yard, making it real estate. Sometimes it is sitting on the dirt, making it chattel.
Like in Sam’s story, some people want to take plants. Also, chandeliers are sometimes important and the sellers want to take them. Both are real estate.
Mirrors that are bolted to the wall are real estate. Mirrors that hang on a hook are chattel.
Islands in the kitchen may not be attached. Some were built for the space, some were not. If they are not attached and not built for the space, they are furniture, therefore chattel.
Hanging pot racks, built in under-the-cabinet appliances, water filters, and baby gates are all real estate, although sellers frequently expect to take them.
My advice is to get these grey-area items sorted and hand the list to the attorneys for the Purchase and Sales Agreement.
Did you have problems in the grey area?
