California Real Estate Broker ExaminationContractsEasy
A real estate agent is preparing a purchase agreement for a property that includes several custom-built bookshelves and a wall-mounted television. To ensure these items are included in the sale, how should they be addressed in the contract?
- AThey are considered trade fixtures and can be removed by the seller.
- BThey should be specifically listed as personal property to be included in the sale.
- CThey are considered fixtures and automatically transfer with the property.
- DThey should be verbally agreed upon by both parties, as written inclusion is not strictly necessary.
Show answer & explanationAnswer & explanation
Correct answer: B. They should be specifically listed as personal property to be included in the sale.
While custom-built bookshelves might be considered fixtures, and a wall-mounted TV could be ambiguous, the best practice to avoid disputes is to explicitly list any items the buyer expects to be included in the sale. This clarifies intent and ensures they are legally part of the transaction.
Why the other options are wrong
- A. This is incorrect. Trade fixtures are typically associated with commercial tenants and are removable by the tenant, not applicable to a residential seller.
- C. This is only true for true fixtures. The status of items like a wall-mounted TV can be ambiguous, and explicit inclusion is safer.
- D. This is incorrect. The Statute of Frauds requires real estate contracts to be in writing, and verbal agreements are generally unenforceable for such inclusions.
Inclusions in Purchase Agreement
Items that are explicitly stated in a purchase agreement to be part of the real estate sale, beyond what is legally considered a fixture.
- Prevents disputes over ambiguous items.
- Overrides the general 'fixture' rule if specified.
- Must be in writing to be enforceable.
Memory trick: If it's not 'fixed' or 'firmly attached,' spell it out, don't just assume it's part of the house!