Humber/Ontario Real Estate Course 1 Exam Practice

In terms of chattels and fixtures, which of the following statements is correct?

1. Both chattels and fixtures are affixed to the real property.

2. Chattels and fixtures are personal property and, as such, are always excluded from the sale.

3. A built-in stove would typically be a fixture, while a free-standing freezer would be a chattel.

4. Chattels are typically included in the purchase price and fixtures are excluded.

5. Fixtures are always considered personal property.

6. Chattels have no impact on property valuation.

The correct answer is: A built-in stove would typically be a fixture, while a free-standing freezer would be a chattel.

The statement regarding a built-in stove being classified as a fixture and a free-standing freezer as a chattel is correct because it reflects the essential distinction between these two classifications of property. A fixture is typically a piece of personal property that has been attached to the real property in such a way that it becomes a permanent part of the property. Built-in appliances, like a stove that is affixed to the cabinetry, are considered fixtures because they are integrated into the home and would likely remain with the property upon sale. In contrast, a free-standing freezer is considered a chattel because it is not fixed to the property and can be easily removed without causing damage. Chattels are personal property items that can be transported and are not attached to the structure or land. This classification is essential in real estate transactions, as fixtures are included in the sale of the property, whereas chattels typically are not unless explicitly noted. This understanding of fixtures and chattels assists in clarifying which items are included in the transfer of ownership during real estate transactions and ensures both buyers and sellers are in agreement about what is being sold and purchased.