What is an exclusion in a real estate contract? What is inclusion? These refer to fixtures at the property which is for sale. If you desire to sell your home, it’s essential to understand the “law of fixtures” relating to what you leave and take with you.
What Is a Fixture?
Generally speaking, a fixture is any item affixed or attached to the house, townhouse, condo, or property which is installed with the intention that it be there permanently.
Examples of fixtures (items that stay or are included):
- Built-in cabinets (in the bathroom, kitchen, or anywhere else)
- lights mounted from the ceiling
- built-in ovens or other built-in appliances
- in-ground (not potted) rose bushes.
- Built-in fire screens
- a fireplace insert
- window coverings
- wall air conditioning unit
- built-in speakers
- built-in wine fridge
- hot tub (unless it is a portable model, which most aren’t)
The exception to the rule is anything attached solely for earthquake safety. This will be the case if you have an extensive buffet bolted to the wall so that it doesn’t topple in the case of a big quake. In Silicon Valley, fixtures are generally included with the home sale. These refer to fixtures at the property which is for sale. The “law of fixtures” relates to what you leave behind.
What Is an Exclusion?
Exclusions refer to fixtures the seller does not want to include with selling the real estate (real estate) but that otherwise would or should stay. These refer to fixtures at the property which is for sale. The “law of fixtures” relates to what you leave behind.
Exclusion examples:
- there may be a light fixture in the dining room, which is a family heirloom, and the seller does not want to leave it with the house
- an in-ground plant, bush, or small tree that the seller wants to take when moving out
- curtains that match a bedspread or other decor
- built-in stereo speakers
- surveillance equipment, such as a Ring doorbell or camera (I saw this recently where the seller wanted to keep it)
It would be noted either in the MLS, with a note at the property, or when the buyer’s agent calls the listing agent to ask about offer instructions. Other examples could be a unique fireplace screen, curtains in one or more rooms (may match a bedspread or other décor), or even a rose bush in the garden with sentimental value.
What Is an Inclusion?
Inclusions refer to personal property (not affixed) that the seller will leave even though it is not required since it’s not attached. Commonly we see refrigerators, washers, and dryers included, even when they are not attached. Sometimes furniture may also be negotiated, such as a pool table, patio dining set, a sofa, or perhaps a huge dining table that won’t fit into the seller’s new house but fits where it is ideally.
The Trouble with Inclusion or Exclusion
A close friend purchased a vacation home used as an Air B&B rental. She got the townhome, furnishings, plates, cutlery, etc. A risk is that the appraiser may need to learn how to value the non-real property, and you could end up with a low appraisal. Rather than roll it into the contract, often there will be a separate bill of sale for inclusions.
Upsets can happen if the buyer or seller (or their real estate agents) have different expectations of what stays and what goes. That’s why anything not built in must be named in the contract if it is to stay with the property or if the seller does not want it to stay. Sometimes it is a bit of a gray area.
