Sell for More Trivia is a weekly blog series that playfully presents a trivia question about commercial real estate.
When you sell a commercial property…the property “fixtures” transfer to the buyer (unless stated otherwise in the Purchase and Sale Contract). So, what is a fixture?
The issue of what constitutes a fixture in a property and what doesn’t has been the source of many conflicts. What the buyer might believe is a fixture and should come with the property might not be considered a fixture by the seller.
It’s important that both buyers and sellers are very clear on the things are considered to be fixtures and what aren’t in order to avoid any unpleasant surprises and disappointments.
Rule of Thumb
The general rule of thumb in real estate is that if an item is fastened or attached to the property, it’s considered a fixture. In essence, fixtures are part of the property and should come with it when the buyer takes possession.
If the seller absolutely wants to take the fixture, it should be removed before any buyers tour the property.
For instance, a dishwasher in a common area kitchen would be considered a fixture because it’s attached to the cabinetry and attached to the plumbing of the property.
To the contrary, the cool reclining chairs in the lobby are not fixtures, but rather personal property, because they are in no way attached to the property.
(FREE PROMOTION) Find out how much your property is worth, for free, before you list it for sale. Get the blueprint to sell your property for the highest price the market will pay (click here)
How to get an unfair advantage. Click here to join Sell for More Club today.
Own a business? 90% of business owners don’t know the market value of their business. If you’re considering selling a business, click here for a free business valuation.
About Beau Beach, MBA CCIM
Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee and South Florida markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached at 800-721-3287, click to schedule a call or Beau@soldbybeachwood.com