Humber/Ontario Real Estate Course 4 Exam Practice

Which statement about chattels and fixtures is NOT correct?

1. A movable table is a chattel.

2. Chattels are usually included in a purchase and sale agreement.

3. Fixtures are generally included in a purchase and sale agreement.

4. A built-in oven is a fixture.

5. Chattels must be listed separately in contracts.

6. A portable barbecue on a patio is a chattel.

The correct answer is: Chattels are usually included in a purchase and sale agreement.

The assertion regarding chattels being typically included in a purchase and sale agreement is not accurate. In real estate transactions, chattels are defined as personal property that is movable and not permanently attached to the property. Since they are not considered part of the real estate, they are not automatically included in a purchase and sale agreement unless explicitly stated. This means that for a chattel to be included in the sale, it must be itemized in the agreement. Therefore, the inclusion of chattels in a standard purchase agreement is not the norm and requires clear identification and mutual agreement between buyer and seller. Other statements accurately reflect the definitions and common practices associated with chattels and fixtures. For instance, a movable table is rightly categorized as a chattel, while a built-in oven is recognized as a fixture due to its permanent installation. Fixtures, which are items permanently attached to the property, are indeed generally included in sale agreements, further distinguishing them from chattels. Additionally, listing chattels separately in contracts helps clarify what aspects of personal property are part of the sale. Lastly, a portable barbecue, which can easily be moved and is not affixed to the property, demonstrates the characteristics of a chattel.