5 things to remember about chattels and fixtures

Wednesday Mar 08th, 2017


The buyer notices that the oven is not working when they do their final home visit, 2 days before closing. Can 
the buyer refuse to close or hold back money to repair the oven? These are just some of the questions that I 
receive from anxious buyers during the course of a home purchase. 
Here are 5 key lessons to remember:
1. The buyer cannot refuse to close a real estate deal if an appliance is not working, or if there are minor 
damages on the property, unless the contract says so. What the standard real estate contract says is 
that the buyer can only refuse to close if there has been substantial damage to the property before 
closing. This would cover a house burning down or a major flood before closing, but would not cover a 
cracked window or appliance that is not working.
2. The buyer or the buyer lawyer is also not permitted to decide on their own to hold back money to 
complete any repairs, unless the contract says so. In my experience, sellers rarely agree to any clause in 
an agreement that permits a buyer to hold back money, for example, to make sure that the seller has 
completed any required repairs before closing. The problem is that in practice, buyers will typically say 
that they are not satisfied with the repairs and the holdback money cannot be released to anyone. 
3. Here is my advice to settle repair or damage issues: get an estimate for the damage and then have your 
lawyer send it to the seller lawyer, offering to just settle the matter by the seller either fixing the 
problem before closing or the seller providing a credit equal to the estimate and the buyer fixes it 
themselves after closing. I am usually able to work this out with seller lawyers before closing. 
Unfortunately, if there is no settlement, there is no automatic right to hold back money and the buyer 
will be required to sue the seller in Small Claims Court after closing to get their money back. This is not 
a good solution for anyone, because of the time it takes to go to court to resolve this. Be reasonable 
and solve your problem.
4. What if the oven breaks down 2 days after closing? Unfortunately, the way the contract is written, the 
buyer does not get an extended warranty. The seller will typically only warrant that appliances and 
home systems will be working on closing, not after closing. Make sure that even if you are not moving 
in until a few days after closing that you go to your home immediately after closing and check to make 
sure that everything is working properly. If anything is not working or there is a damage, have your 
lawyer immediately contact the seller lawyer the next day about your issue. Also consider buying after 
sale insurance protection to cover your home systems and appliances. Canadian Home Shield is a 
company that offers this type of protection at a reasonable price.
5. Little things matter. If your seller is removing a chandelier, make sure they are required to replace it 
with a standard light fixture so you do not walk into a dark home on closing. If your seller is removing a 
TV bracket from the wall, make sure that they are required to fill in any holes that are created. Make 
sure you are to be given 2 full sets of keys, FOBs if a condominium, garage door openers and mail box 
keys. If the agreement is silent, the seller may only get you one set and it is costly to obtain a duplicate 
set, in most cases. When you understand the rules about chattels and fixtures and properly protect yourself, you should be able 
to minimize any problems that arise after closing.
Mark Weisleder
62 Hillmount Ave. Toronto, Ontario,M6B 1X4
(416) 702-2499 
170 Wilkinson Rd., Brampton, Ontario, L6T 4Z5
(905) 454-9606
mark@markweisleder.com / http://www.markweisleder.com

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