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How to tell if it's Real Property (Fixture) or Personal Property?


One of the biggest issues that can cause confusion between buyers and sellers is whether an item is considered personal property or real property (a fixture). Personal property leaves with the seller when the sale closes. Real property stays with the house and ownership transfers to the buyer. Real property is anything that is a permanent fixture: a TV permanently attached to the wall, a built-in fireplace, a stove built into the cabinets, etc. Personal property is anything that can be removed without causing damage OR changing the use of the property: a stove that can be unplugged without causing damage, removable hanging basket plants, a freestanding pool. The best way I like to remember is the dollhouse trick.




Imagine

Think of your house as a dollhouse, flip it upside down, and shake it. Everything that falls out (generally) is personal property.





Remember, everything is negotiable.


Any questions on items should be worked out and included in the contract. That way nothing is up for interpretation. The last thing you want is to get into your dream home and the 75 inch TV you're expecting has just vanished.


Triple-A test: Attachment, Adaptation, Agreement


These tests are to determine if something is a fixture. The first A is attachment. This is whether or not the item in question is permanently attached to the house. Say you had a 100 lb fountain in the front of your home. It is freestanding and hasn’t been attached to the property in any way. Even though it's half a ton, you still can take it when you move because it is freestanding. It would be a pain in the ass to move it with you, but that’s another issue. If you had it cemented into the ground when you first got it delivered, then it would stay.


The 2nd test is adaptation. How has it been adapted to the house? If that fountain was part of an outside entertainment area with it being a focal point, then it would be a fixture. It has been worked into the property in such a way that if you were to remove it the whole outdoor area would lose value. Adaptability is a hard one to nail down, and it’s even harder to predict how the courts would rule (if it even got to that point). That’s why the 3rd ‘A’ is my favorite.


Agreement. This one is easy. If something’s up in the air, just clarify it between all parties. It’s the only sure way to avoid misunderstandings. You’ll be happy you talked it through when that 75inch is there when you move in.


Zach Bern REALTOR headshot

Zach Bern, REALTOR®

Northern Virginia real estate firm Coldwell Banker Premier logo

Licensed in Virginia

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Office Address.

415 South Street Suite C

Front Royal, Virginia 22630

C. (540) 252-6176

O. (540) 636-7700

zachbern@premiermove.com

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