The sale and purchase of a residence in Medicine Hat often involves the valuable assistance of a licenced realtor who, in turn, will rely on a Standard Residential Real Estate Purchase Contract that has been developed and approved by the Alberta Real Estate Association.  The contract confirms the agreement and transaction details made between the seller and buyer.  The contract will identify the three Ps of any residential sale/purchase contract – the parties, the price and the property.

There are many other terms and conditions that form part of the contract, some of them which can give rise to some interesting and, at times, conflicting legal issues.

Paragraph 1.1 of the Standard Residential Real Estate Purchase Contract identifies the property being purchased, which normally includes:

1. the land and building(s);
2. unattached goods, if any; and
3. all attached goods (unless specifically excluded from the transaction).

Here are some common unattached goods often included in the Purchase Price:

• Fridge,
• Stove,
• Dishwasher,
• Microwave,
• Washer & Dryer,
• Etc.

A common legal issue arises when trying to determine if something is an attached good vs. an unattached good. For example, is a wall-mounted television an attached or unattached good?

Attached goods (sometimes referred to as fixtures) are household items that are attached/affixed to the property and cannot be removed without causing some type of damage. Unattached goodsare moveable items in a property (sometimes referred to as chattels) and often include:

• Furniture,
• Artwork,
• Area rugs,
• Pool table,
• Appliances (as described above),
• Etc.

With respect to the wall-mounted television, the wall-mount itself would be considered an attached good while the television would be considered an unattached good. These distinctions are important to discuss when entering into a Contract to buy or sell real estate.

The basic principle of real estate law is that whatever is affixed to the land becomes part of the land and is an attached good and, as between seller and buyer of the property, all attached goodspass with the land when the land is sold.  Once an item is determined to be an attached good, the seller has no right to remove the item after the contract has been signed.

In determining what is or what is not included in the purchase price and what items can or cannot be removed after the Contract is signed, consideration should be given to these guiding principles.  Items, such as a fridge, stove or washer and dryer, are clearly unattached goods and should be specifically identified in a contract, if included as part of the purchase price.  Other items may not be as clear.  Talk to your real estate agent and lawyer to understand what qualifies as an attached good vs. unattached good. Whether you are selling or buying real estate, your advisors will help you navigate a smooth transaction.

Pritchard and Co

Pritchard and Co. Law Firm, LLP helps you navigate the turning points of life.
Contact us at 403-527-4411 or at lawyers@pritchardandco.com.