What are inclusions and exclusions?

February, 2008 

Exclusions and inclusions are the technical terms for those fittings and fixtures that will or will not be sold with the property. The status of fixtures and fittings in a property that is for sale are determined through negotiation between buyer and seller before the contracts are exchanged or the property settled.

Fixtures differ from fittings in that fixtures are 'affixed' to the land and pass to the buyer upon purchase, while fittings are chattels (personal property) that do not pass in ownership with the property. So, fixtures are 'automatic inclusions' and must be specifically excluded in any agreement, while fittings are automatically excluded and must be specifically included in any agreement.

Example of fixtures

Possibly the most common example of fixtures are plants in the garden (if the property has a garden). These, if the seller wishes to specifically exclude them from the purchase (and subsequently remove them prior to settlement) must be expressly excluded from the sale.

Examples of fittings

Fixtures and fittings may include the following:

  • Inside living space items: light fixtures or carpets;
  • Kitchen fixtures: stoves, dishwashers, dryers, etc.

It is assumed that such fittings are excluded from sale. If they are to be included they must be expressly included in any agreement.

It is greatly advisable that these inclusions and exclusions be agreed upon prior to the drafting or exchanging of contracts as it is best practice to include them (or attach an agreement to the contract) specifically in a term of the contract.

After these inclusions and exclusions are agreed upon then they must be included with the property upon settlement (or removed before settlement), unless another agreement between the parties for another timing for inclusion is made. The inclusion and exclusion of fixtures and fittings takes on greater importance in the purchase of a business.

 
Back to Index

Site Map | LEAP Website | Powered by LEAP Legal Software