The world of real estate transactions can sometimes be filled with unexpected surprises, particularly when it comes to chattels. In this guide, we’ll shed light on the importance of understanding chattels when buying or selling a property, helping you navigate the process with confidence and clarity.

Defining Chattels

To start, it’s crucial to know what chattels are. Chattels are movable, non-fixed items that are included with a property when it is sold. These items are not considered part of the land or the building itself. Examples of chattels include light fixtures, curtains, ovens, tables, flag poles, and even spa pools. The key characteristic of chattels is their mobility.

Chattels in the Sale Agreement

When a property is bought or sold, the list of chattels included in the transaction is outlined in Schedule 2 of the Standard ADLS Agreement for Sale and Purchase. It’s imperative to review this list carefully to avoid any misunderstandings or disputes later on.

If a chattel is listed in the Agreement, the vendor is obligated to provide it as part of the property sale, without any additional cost to the buyer. This ensures clarity regarding which items are included in the transaction.

Vendor’s Warranty and Chattels

Under the standard ADLS Agreement for Sale and Purchase, the vendor provides a warranty that any chattels included are in reasonable working order, where applicable. If a chattel isn’t in working order prior to signing the Agreement, it should be explicitly noted in the Agreement. For instance, if the washing machine is not operational, it should be stated as “washing machine – not in working order” instead of just “washing machine.”

In cases where a chattel is included in the sale, such as a washing machine, and it is not in working condition at settlement (with no prior statement in the Agreement about its condition), the purchaser has a legitimate claim against the vendor. This is because the vendor was selling the chattel with the property and warranting that it is in reasonable working order. However, keep in mind that if the washing machine is old or significantly aged, the vendor is not obliged to provide a brand-new washing machine; the obligation is typically “like for like” or covering the cost of repairs.

Case Scenario

Consider a scenario where a greenhouse is not listed as a chattel in the sale Agreement. In such a situation, the purchaser has no legal right to insist that the vendor leave the greenhouse on the property, as it wasn’t included in the sale.

Seeking Legal Advice

Before finalizing an Agreement for Sale and Purchase, it is highly recommended to consult with legal professionals who can ensure that the Agreement accurately reflects your expectations. This proactive approach can help you avoid misunderstandings and unexpected surprises during property transactions.