In, New Jersey there is a difference between real and personal property. Real property is land and includes items that are affixed to the land, usually buildings and other improvements. Personal property is anything else. However, there is a third category of property that falls in between real and personal property. Items that fall within this third category are called fixtures. Fixtures often start out as personal property and become so attached to the real estate that they essentially become part of the real estate while still holding a separate identity.
When buying or selling property, it is important to understand whether something is a fixture that will stay on the property after closing, or personal property that the seller can remove. A purchaser may view the property and assume that the window treatments, wall-mounted television, or swing set is included with the property. On the other hand, the seller may be intending to take these items with them when they move.
When assessing whether or not property is a fixture, courts look at several factors. These factors include the following:
In or to avoid any misunderstandings, it is important that buyers and sellers make sure that their contracts clearly set forth what is included in the sale so that there are no misunderstandings and everyone has the same expectation regarding what will remain with the property at closing.
Peter J. Vazquez, Jr.