Chattels vs. Fixtures in an Ontario Home Purchase: What Stays, What Goes, and How to Write the APS

Step 1: Get the two terms straight — fixture vs. chattel

This is the foundation; once it clicks, the rest follows. Ontario runs on two opposite defaults:

• Fixture — something attached to and forming part of the home. Typical examples: built-in cabinetry, hard-wired light fixtures, central air conditioning, built-in speakers, attached shelving. The rule: it stays by default, unless the seller writes in the contract that they’re taking it.
• Chattel — movable personal property that isn’t part of the home’s structure. Typical examples: the fridge, washer, dryer, microwave, furniture, drapes. The rule: it goes by default, and only stays if it’s individually listed as “included.”

One line to remember: fixtures stay, chattels go. Most closing-day disputes start with buyer and seller disagreeing on whether a given item is “a fixture or a chattel” — and the fix is always the same: put it in the contract.

Step 2: How the law decides whether something is a fixture or a chattel

When the contract is silent and the two sides disagree, Ontario courts fall back on a test that’s over a century old. According to Stack v. T. Eaton Co. (1902), the case most often cited in Ontario, the analysis turns on two things:

• Degree of Annexation — how is the item attached, and how firmly? If it’s set into the wall, welded to the structure, wired or plumbed into the home, or can’t be removed without significant damage or tools, it leans toward being a fixture. If it merely hangs from a plug, hook, or a couple of screws and comes off cleanly, it leans toward being a chattel.
• Object of Annexation — why was it attached? If the purpose was to enjoy the item itself, it leans chattel; if the purpose was to permanently improve the home, it leans fixture.

A caution: this legal test is what a court uses in litigation — it’s slow, expensive, and uncertain. The right move for a buyer isn’t to bet the test will favour you; it’s to write every item you care about into the contract so it never gets that far.

Step 3: The two key fields in the contract — "Chattels Included" and "Fixtures Excluded"

What actually decides ownership is two blank fields in the contract. The standard Ontario Agreement of Purchase and Sale (OREA Form 100) has them side by side:

• Chattels Included — list every movable item you want the seller to leave: fridge, washer, dryer, dishwasher, garage-door remotes, drapes. Any chattel not written here, the seller is entitled to take.
• Fixtures Excluded — any fixture the seller wants to remove before closing must be written here. If the seller wants to take the dining-room chandelier that’s been in the family, it has to be listed. Any fixture not listed in this field stays with the home by default.

The key rule: a seller who removes a fixture that wasn’t listed in “Fixtures Excluded” is in breach of contract. So when you write your offer, for anything that caught your eye and you’re unsure whether it’s a fixture or a chattel — the wall-mounted TV, the custom drapes, the garden shed — write the extra line rather than betting on the default.

Step 4: The trap that catches buyers — "rental items" (hot water tank, furnace, water softener)

This is the one buyers get caught on most, because it’s neither the seller’s fixture nor a free chattel — it’s a third category: rental items with a monthly contract attached.

• In Ontario, the hot water tank is most commonly rented; sometimes the furnace, air conditioner, water softener, or alarm system are rented or financed too.
• When the contract says a rental item is to be assumed by the buyer, you’re agreeing to take over the monthly payments on closing — you are not getting the equipment for free.
• These items usually sit behind a rental company’s contract terms (sometimes with buy-out penalties). Before you buy, ask: which items are rented, what’s the monthly payment, how long is left on the contract, and can it be bought out?

My practical reminder: don’t assume the “hot water tank” comes free. Before you sign the offer, have your agent and lawyer confirm whether each piece of equipment is owned or rented. An owned fixture stays with you by default; a rental is an ongoing cost you inherit — they are worlds apart.

Closing-day disputes cluster around a handful of items. Check them against your situation and spell them out in the offer:

• Wall-mounted TV — the classic grey area. The bracket screwed into the wall is a fixture, but the TV itself is a chattel. If you want the TV too, write “wall-mounted TV and bracket” into “Chattels Included.”
• Light fixtures — hard-wired fixtures are fixtures by default and should stay. But sellers often get attached to a particular chandelier — if the seller wants to take one, it must go in “Fixtures Excluded,” or removing it is a breach.
• Appliances (fridge / washer / dryer / dishwasher) — free-standing, plug-in appliances are usually chattels and won’t come with the home unless listed in “Chattels Included.” Built-in appliances are more likely fixtures, but don’t gamble — list them anyway.
• Garden shed / outdoor structures — a shed anchored to a foundation is usually a fixture and should stay; a portable shed sitting on the ground leans chattel. When in doubt, spell it out.

Here’s everything above turned into an actionable checklist. When you write the offer, walk through these with your agent:

• Photograph it during showings. Capture every light fixture, appliance, and outdoor structure you care about, as proof of “this is how it looked when I saw it.”
• List chattels individually in “Chattels Included.” Don’t write a vague “all appliances” — name the brand/location (e.g., “kitchen stainless-steel fridge, basement washer and dryer”) so it can’t be swapped for a cheaper unit.
• Pin down every rental item in writing. Which items are rented, who assumes them, and the monthly cost — in black and white.
• Spell out the grey areas. Wall-mounted TVs, custom drapes, garden sheds — write the extra line rather than argue later.
• Do a final walkthrough before closing. Check every item against the contract list; if something’s missing, deal with it through your lawyer before closing, not after the money’s gone.

Will the wall-mounted TV I saw during the showing be left for me at closing?

Not by default, unless it's written into the contract. Under the usual test, the bracket screwed into the wall is a fixture and should stay, but the TV itself is a chattel — the seller's personal property. If you want the TV, write "wall-mounted TV and bracket" into the "Chattels Included" field of the OREA Agreement of Purchase and Sale; otherwise the seller can take the TV and leave (or even remove) the bracket.

Are appliances like the fridge, washer, and dryer automatically included?

Usually not. Free-standing, plug-in appliances are generally chattels and must be individually listed in the "Chattels Included" field to come with the home. List the brand and location (e.g., "kitchen stainless-steel fridge") so they can't be swapped for a cheaper unit at closing. Built-in appliances are more likely fixtures, but to be safe, list them anyway.

Can the seller remove that nice dining-room chandelier before closing?

No — unless they wrote it into the contract. Hard-wired light fixtures are fixtures by default and should stay with the home. If the seller wants to take a fixture with sentimental value, it must be listed in the "Fixtures Excluded" field of the OREA agreement. Removing it without listing it is a breach of contract, and the buyer can pursue it.

The hot water tank is rented — do I keep paying for it after I buy?

Very likely yes. In Ontario the hot water tank is commonly a rental item, and sometimes the furnace, AC, or water softener are too. If the contract has you "assume" these rentals, you take over the monthly payment contract on closing rather than getting the equipment free — and there may be buy-out penalties. Before signing the offer, have your agent and lawyer confirm which items are rented, the monthly cost, how long is left, and whether it can be bought out.

How do I write the offer to avoid a fight over items on closing day?

Three things: first, list every chattel you want in "Chattels Included," with brand and location; second, pin down every rental item in writing — which are rented and who assumes them; third, spell out grey areas like wall-mounted TVs, custom drapes, and garden sheds rather than betting on the default. Then do a final walkthrough before closing, check every item against the contract, and handle anything missing through your lawyer before closing.