With respect to Chattels and Fixtures, what simple rule should you follow when drafting an Agreement of Purchase and Sale:
A. Rather than use your own judgment as to whether an item is a fixture or a chattel, if an item is included, list it as included, and if it is not included, list it as not included;
B. If an item might fall under definition of fixture, you should not list it as a chattel included in the purchase price.
1. Select “A”. This is the better practice and you will find it commonly used in commercial transactions.
2. This is a strange format. But, many people will do just that. It simply adds to the confusion of what is and what is not a Chattel or a Fixture, as the case may be.
Also, this is risky since it demonstrates “incompetence”. You don’t want a mis-description to appear in your documents.
You can also say: “xyz whether it be a fixture or a chattel is included/excluded…”. as the case3 may be.
Brian Madigan LL.B., Broker