Understanding Exclusions

The easiest way to understand exclusions is as follow ... If something is bolted in, screwed in, cemented in, or permanently affixed  to the home, it remains with the home when it sells unless the seller excludes that item on the contract.  However, if something is excluded on the contract by the seller, whether it is affixed to the home or not, the seller has the right to take it with them.  It can be a little confusing trying to determine what is or is not attached to a home.  Let me share a story of what happened to me one time in this area. 

Many years ago I sold a home in Murphy.  The day after closing I received a call from the buyer asking where the mirror in the powder bath was.  I immediately remembered the powder bath and that mirror.  It was HUGE!  I have no idea how much it weighed but I just assumed it was bolted or screwed in.  Not only did it look like it was custom made and fitted for that room (it went from wall to wall), I couldn't imagine how something that large could possibly be held up by hooks.  When I went back out to the home, sure enough, there, behind where the mirror had been, was the heaviest set of hooks and bracing I had ever seen.   The seller believed they were right in not excluding the mirror on the contract  because it was hanging on hooks, not bolted in.  It  was theirs to take in the first place.  But the Texas Real Estate Commission contract of sale specifically states that mirrors are considered a part of the home.  So who was right?

Here are some other items a seller might want to take with them ...

• Chandeliers and sconces - They remain with the home.  If a seller wants to take those items with them, we suggest they take them down prior to the first showing and install other fixtures in their place.  The reason I said prior to the first showing is that could be the buyer.  The next time they walk in and see the chandelier or sconce has now been replaced (most likely with a less expensive piece), they are not going to be happy.  So don't take the chance.  Move them out and let them see what they are getting for their money. 

• Fireplace screens - Believe it or not, they are considered part of the home in the Texas Real Estate Commission (TREC) standard contract of sale.  I have to believe the intent is for custom fitted screens designed specifically for that fireplace, but it is not stated that way in our contract.  So just exclude them from the property if you want to take them with you.

• Gas logs - In the revised TREC contracts, gas logs are now considered part of the home.  Oddly enough, no mention is made of the grills they are sitting on, so unless they are excluded from the sale, the seller can take the logs with them, but the grills stay unless they are excluded by the seller. 

• Wall mounted televisions - They are not specifically addressed in our TREC contract of sale.  Most agents would tell you the television is not part of the home because it is mounted on brackets, but the brackets are part of the home because they are bolted into the walls.  Again, just exclude the television and brackets to be safe.

• Curtain rods and draperies - They stay unless excluded.

• Hanging Pot racks - They stay unless excluded.

• Satellite dishes - They stay unless excluded.

• Washer and dryers -  They go with the sellers.

• Refrigerators - Be careful with this one.  If the refrigerator is built into a form fitting cabinet and cannot be easily removed without taking the trim apart, it is generally considered to be a part of the home.  If it is not custom fitted to match the opening (there will be large gaps between the refrigerator and the cabinet) and can easily be rolled out and moved, it is considered to be the seller's own property to take with them.  This is a fairly loose standard, so if you have any doubts as a seller, just exclude it.

• Garage built-ins - They stay if they are attached to the walls unless excluded.

• Speakers - Like wall mounted televisions, speakers are not mentioned in our standard TREC contract of sale, so this is another gray area.  Are the speakers a part of the home or just the brackets that are physically attached to the walls or ceilings?  And what about speakers hidden in the ceiling that you cannot see?  Again, if the seller wants to take them, all they have to do is just exclude them on the contract of sale.

• Window A/C units - They stay with the home unless excluded.

• Swings hanging from a front porch - Also not mentioned in our TREC contract of sale, but my call would be the actual swing which is hanging on the hooks goes with the seller, but the hooks remain.

• Play sets - If they are sitting on top of the ground and not cemented in, they go with the seller.  If they are cemented in, they remain with the property unless excluded.

• Plants and trees - If they are planted outside in the yard, they stay with the home unless they are excluded.  If they are in pots, inside or outside, they are for the sellers to take.

One last point.  I have sold many homes with no seller exclusions at all.  I have also sold homes with surprising exclusions ... like a rose bush in a back bed that was given to the seller by their grandmother.  Most of the time I would have to say an exclusion is made by the seller for sentimental reasons, not monetary gain.  And most of the time, the buyer doesn't even care about the exclusion as long as they are told about it right up front on the contract!  No buyer wants to be hit with a surprise when they move into a home. 

As a seller, never assume that a buyer is not going to care about something that is physically attached to your home.  If in doubt, just list the item as an exclusion on the contract and it is yours to take with you!

Tom Grisak Estate Homes Realtors, Inc - Texas License # 0329533

Your Realtors for Allentexas, Fairviewtexas, Lucastexas, McKinneytexas, Murphytexas, Parkertexas, Prospertexas