REBGV Contract of Purchase and Sale Explanation – Included and Excluded Items (Section 7)
Dates in a Real Estate Transaction were discussed in Episode 10 of the First Time Home Buyer's Advice series. Today, we’re going to have a closer look at the Contract of Purchase and Sale, specifically, what it included and what is excluded.
Inclusions are added to Section 7 by Buyers. Exclusions are added to Section 7 by Sellers.
You can specify what is and is not included in Section 7your Contrac of Purchase and Sale (see example below).
In this example, we have Included the following items: Washer/Dryer, Stove, Oven, Dishwasher, Chandelier in the Dining Room, Big Screen TV in the Living Room.
There are no Excluded Items in this sample contract.
What is Normally Included When Buying in Vancouver?
It is standard in Vancouver to include major kitchen and laundry appliances, all keys/fobs/card locks, coverings and some light fixtures. Often you will also see more items like furniture, outdoor furniture, BBQ, area rugs, other fixtures, etc. - really any item(s) that the buyer wants to have included with the property. In turn, Sellers may add a list of excluded items: items they don't want to part with when the property is sold.
Two Classes of Items When Buying a Home?
When buying and selling a home, there are two classes of items within the property. Those are:
- Chattels – Personal property that is not physically attached to the property. Chattels are normally not included in the Contract of Purchase and Sale. Examples of Chattels are clothing, food, art, furniture, kitchen equipment, personal effects, etc.
- Fixtures – Objects physically attached to the property that are automatically included in the sale. Examples of a Fixture would be windows, doors, the roof, mirrors that are affixed, flooring, etc.
It doesn't hurt to be thorough: When buying a property in Vancouver, although it is not required to list all the fixtures in Section 7, if there is a specific fixture that the Buyer wants included MAKE SURE TO INCLUDE IT IN SECTION 7!
As for Chattels are not automatically included anywhere within the Contract of Purchase and Sale. If there is a Chattel item that a Buyer wants, make sure to include it in Section 7. The Seller may not agree and counter with an exclusion, but it doesn't hurt to try.
Want Something Included or Excluded? GET IT IN WRITING in SECTION 7!
In Real Estate, everything is negotiable and that includes the contents of property you may be looking to purchase in Vancouver (Chattels such as personal effects, furniture, art, etc) . If, for example, you've fallen in love with the Sellers ferocious looking bear skin rug or organic tofu processor, then INCLUDE these items in Section 7:
Write: “Bear Skin Rug near Fireplace in Living Room” or “Organic Tofu Processor on Counter in Kitchen”.
If the Seller agrees, then these items will be INCLUDED in the purchase price of the property when the Completion Date occurs.
If the Seller agrees to the offer , then your specified inclusions in Section 7 will remain unaltered. Th Seller is then bound by the contract to include the particular item(s) or fixture(s). If the Seller does not agree, then the Section 7 will be altered to EXCLUDE the items you included. The Seller may agree or disagree to all or part of your inclusions. Either way, be sure to double check Section 7 to ensure that you are satisfied with the specidifed inclusions and exclusions.
All INCLUSIONS AND EXLUSIONS MUST BE IN WRITING!! Don’t trust a Sellers word that they will include or exclude a particular item or fixture!
If you’re dealing with a non-trustworthy seller a Hold back may also be a good way to ensure the items in Section 7 are either included or excluded as per the contract. Click this link to read more about Hold Backs.
Looking for Pre-Construction Condos in Vancouver? Check out these great videos on Off-Plan Condos in Vancouver!
Need Advice on Selling in Vancouver? Have a look at these great videos on how to Sell Your Condo in Vancouver!
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