Humber/Ontario Real Estate Course 4 Exam Practice

Why is personal property excluded in an agreement of purchase and sale?

1. The buyer does not want additional items

2. The items are permanently attached

3. Such items are considered chattels

4. The items depreciate in value

5. Nobody needs the personal items

6. Seller wants to keep them

The correct answer is: Such items are considered chattels

Personal property is excluded in an agreement of purchase and sale because such items are classified as chattels. Chattels refer to movable items that are not permanently affixed to the property. This distinction is important in real estate transactions because the agreement typically pertains to the sale of real property, which includes land and anything permanently attached to it. By categorizing certain items as chattels, they are identified as personal property that does not form part of the deal unless specifically included. This classification helps clarify which items are included in the purchase and which are not, ensuring both buyers and sellers have a clear understanding of what is being transferred in the sale. For example, if personal items such as furniture, appliances, or garden decorations are not specified in the agreement, they remain the seller's property and are not automatically included in the sale of the real estate. The other choices either misrepresent the nature of personal property in real estate transactions or focus on irrelevant aspects that do not define why personal property is excluded under typical agreements. For instance, while an owner might want to keep their personal items, that doesn't address the legal classification of those items in the context of a real estate sale.