What are inclusions and exclusions?

February, 2009

Exclusions and inclusions are the technical terms for those fittings and fixtures that will or will not be sold with the property. The status of fixtures and fittings in a property that is for sale are determined through negotiation between buyer and seller before the contracts are exchanged or the property settled.

Fixtures differ from fittings in that fixtures are 'affixed' to the land and pass to the buyer upon purchase, while fittings are chattels (personal property) that do not pass in ownership with the property. So, fixtures are 'automatic inclusions' and must be specifically excluded in any agreement, while fittings are automatically excluded and must be specifically included in any agreement.

Example of fixtures

Possibly the most common example of fixtures are plants in the garden (if the property has a garden). These, if the seller wishes to specifically exclude them from the purchase (and subsequently remove them prior to settlement) must be expressly excluded from the sale.

Examples of fittings

Fixtures and fittings may include the following:

• Inside living space items: light fixtures or carpets;
• Kitchen fixtures: stoves, dishwashers, dryers, etc.

It is assumed that such fittings are excluded from sale. If they are to be included they must be expressly included in any agreement.

It is greatly advisable that these inclusions and exclusions be agreed upon prior to the drafting or exchanging of contracts as it is best practice to include them (or attach an agreement to the contract) specifically in a term of the contract.

After these inclusions and exclusions are agreed upon then they must be included with the property upon settlement (or removed before settlement), unless another agreement between the parties for another timing for inclusion is made. The inclusion and exclusion of fixtures and fittings takes on greater importance in the purchase of a business.

FAQ Archive:

What is the exchange of contracts?

January, 2009

When both parties have agreed with the terms of the contract for the sale of land, they both sign the contract and the buyer pays a deposit to the seller....

What is a pre-purchase inspection?

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A pre-purchase inspection is an exercise in 'due diligence', ensuring that the investment the buyer is making is a sound one.  These inspections are carried out by a qualified building inspector who prepares a report on the structural integrity of the property in question....

What is Settlement?

November, 2008

This is the day upon which the sale is made final.  That is, the process of conveyancing is completed and the buyer is able to take possession of the purchased property....

What is Vendor Duty?

October, 2008

In NSW, the vendor duty was payable by the vendor for the transfer of land, or land related property, unless the transaction came within a small number of exceptions, for example your primary residence, substantially improved vacant land, substantially improved buildings or new buildings and land used for primary production....

Can the buyer or seller rescind on the contract?

September, 2008

The legality of a rescission of the contract by either the buyer or the seller is based in both State Conveyancing legislation and the common law of contract....

What is buying off the plan?

August, 2008

This is where an estate agency or development company offers property for sale that is yet to be completed or has not yet commenced construction....

What is stamp duty?

July, 2008

Stamp duty is a State tax on written documents and certain transactions, such as:

• Hire purchase agreements
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Do I really need a lawyer or licensed conveyancer?

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The buying or selling of a property is complex as well as risky. The good news is that having an experienced lawyer (either a solicitor or a licensed conveyancer) act on your behalf in this process is virtually a guarantee that your sale or purchase will go ahead smoothly and with a minimum of fuss....

Powers of attorney

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A power of attorney is a document which allows another person to make decisions on your behalf. There are lots of instances where you may want to execute a power of attorney....

What is conveyancing?

April, 2008

Conveyancing is the process of formally transferring the ownership or control of property from a seller to a buyer. It includes mortgages, charges, leases and the passing of various other interests in property....

What is included in a conveyancing process?

March, 2008

As noted above, conveyancing is the process whereby property is transferred from a seller to a buyer. This involves both legal and administrative processes as well as processes dedicated to ensuring the property is a good investment....