Written Agreement Essential When Differentiating

Between Personal and Real Property

 

By David R. Walker

Southland Regional Association of Realtors

Eliminating a common area of dispute between home buyers and sellers is easy with foresight and careful attention to detail.

Too often a prospective buyer will fall in love with a home only to be shocked and dismayed when moving day arrives to find that many of the features they adored were taken by the seller.

To avoid a surprise, steps need to be taken long before the home purchase goes into escrow.

Work with your Realtor to ensure that the purchase agreement – a legally binding document of sale – includes clauses describing in detail exactly what property is included.

The contract which you sign is a legal instrument enforceable by courts in the event of a breach by either party. If in doubt, it is wise to include additional conditions which must be met before you are obligated to buy and to specify any personal property you would like included in the purchase.

The same holds true for sellers. They could take an item that typically falls under real property if they include it in the purchase agreement. The buyer could say “No,” and then it becomes a subject of negotiation.

Better to invest time and energy before hand coming to an agreement rather than be stunned or face a possible legal fight after the fact.

Real property includes the land, the house itself, and features such as trees, shrubs or a fence. Built-in appliances, window coverings, plumbing, light fixtures and tacked-down carpets also generally constitute real property.

Personal property extends to movable objects that are not permanently attached to real property. Free standing appliances, such as a microwave or toaster probably will be hauled out when the seller vacates the property.

Problems arise when one person’s definition of “built-in” becomes another person’s “free-standing” appliance.

This is especially true when buying brand new home based on a fully furnished model home.

In most cases, you can have the teak paneling, top-of-the-line appliances and designer furniture that helped you fall in love with the home, but only if you’re willing to pay a higher price. If in doubt, be sure that the purchase agreement details what is included in the purchase.

Remember, the agreement to sell between a buyer and seller of real estate is governed by the general principles of contract law. If it’s not in writing you will have little recourse if something is missing.

This column is a service of the 11,800-member Southland Regional Association of Realtors, one of the nation’s largest local associations. Send questions to David R. Walker via e-mail to DavidR7944@aol.com.

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