Chattels, Fixtures and Trade Fixtures: What Stays and What Can Go?
My client “Anna” is selling her property and recently asked me a practical question: which items can she take with her when she moves?
She wanted to remove her IKEA bookcases and bathroom cabinet, which she described as freestanding furniture secured to the walls for safety. Anna also asked whether confirmation that she could remove her security cameras extended to her video doorbell and the outdoor cameras mounted to the house. Finally, she wanted to know whether she could take the TV mounting bracket if she repaired the resulting holes.
Her concern was understandable: she wanted to avoid removing anything she was required to leave under her Agreement of Purchase and Sale.
These questions illustrate why the distinction between chattels and fixtures matters. Similar questions arise in commercial leases when tenants want to remove equipment or installations used for their businesses, distinging trade fixtures and leasehold improvements.
Each item must be analysed on a case-by-case basis, considering how and why it was attached, the surrounding circumstances and the terms of the applicable purchase agreement or lease. Neither attachment alone nor the owner’s intention to take an item provides a complete answer.
What do these terms mean?
Chattels
Chattels are movable items of personal property that have not become part of the real estate. Ordinary freestanding furniture, such as chairs and desks, typically falls into this category.
An item can begin as a chattel and become a fixture through its installation.
Fixtures
Fixtures are items that have become part of the real property because of the degree and purpose of their attachment. Installed plumbing and permanently fitted cabinetry are common examples.
However, attachment alone does not conclusively determine whether an item is a fixture.
Trade fixtures
Trade fixtures are items attached to leased premises by a tenant for trade or commercial purposes that may qualify for removal.
A trade fixture is still a fixture. Its commercial purpose and the circumstances of its installation may give the tenant a right to remove it, subject to the lease and applicable legal rules.
Leasehold improvements
Leasehold improvements are alterations or additions to leased premises, such as partitions, flooring, cabinetry or building systems.
Commercial leases frequently define this term and specify ownership, removal and restoration obligations. An item described as a leasehold improvement must therefore be assessed under the lease as well as the applicable law.
Structural improvements
Structural improvements generally involve additions or alterations to the physical structure of the premises, such as foundations, walls or supporting components.
Calling an installation “structural” does not automatically establish that it must remain. Depending on the circumstances, a structural installation may qualify as a removable trade fixture.
The test for distinguishing a chattel from a fixture
Ontario courts consider two principal factors: the degree of annexation and the object of annexation. “Annexation” means attachment to the land or building.
1. Degree of annexation: how is the item attached?
An item resting only by its own weight is presumptively a chattel. An item attached to the property, even slightly, is presumptively a fixture.
These presumptions are starting points. They can be rebutted by the circumstances, particularly the purpose of attachment.
Relevant considerations include:
Whether the item is screwed, bolted, glued or otherwise secured;
Whether it is connected to plumbing, electrical wiring or other building systems;
Whether it forms part of a larger installation; and
What removal would involve.
2. Object of annexation: why is the item attached?
The court considers whether the attachment allows better use of the item itself as movable furniture or equipment, or whether it improves the property and makes the item part of the premises.
Intention is assessed objectively from the nature and purpose of the installation. A seller’s or tenant’s private intention to remove the item later is not decisive.
The ability to remove an item without substantial damage is relevant, but it does not automatically make the item a chattel. Likewise, the use of screws does not automatically settle its classification.
Residential purchases and sales: what is included?
Buyers often assume that everything they saw during a showing will remain. Sellers may assume that anything they purchased and can remove belongs to them. Neither assumption provides a reliable answer.
Fixtures generally pass with the property unless expressly excluded in the Agreement of Purchase and Sale (APS). Chattels generally must be included if the buyer expects to receive them. The signed agreement, including its schedules and amendments, is therefore essential.
Apply the legal test, not just the screwdriver test
In Stack v. T. Eaton Co. (1902), 4 O.L.R. 335 (Div. Ct.), the court set out the foundational principles: an item resting only by its own weight is presumptively a chattel, while an item attached even slightly is presumptively a fixture. Those presumptions can be displaced by the circumstances, assessed through the degree and purpose of attachment.
The Ontario Court of Appeal reaffirmed the importance of the degree and object of annexation in 2105582 Ontario Ltd. v. 375445 Ontario Ltd., 2017 ONCA 980.
For buyers and sellers, this means that “I can unscrew it” and “I intended to take it” are not sufficient answers. The question is how the item was installed and whether the attachment serves the item itself or makes it part of the property.
The following examples illustrate how those principles may apply. They are not fixed classifications: each installation and agreement must be assessed individually.
Bookcases, cabinets and shelving
A freestanding bookcase attached solely with an anti-tip strap presents a different situation from shelving fitted into an alcove and finished with trim.
For Anna’s IKEA furniture, relevant questions include whether the units stand independently, whether the attachment is solely for safety, and whether they retain their ordinary function as furniture after removal. Those circumstances may support classification as chattels.
By contrast, cabinets secured together, fitted around the room and incorporated into permanent cabinetry may be fixtures, even if they were originally purchased as separate furniture pieces.
The brand does not decide the issue; the installation does.
Light fixtures and lamps
A freestanding floor lamp that can be unplugged and carried away is ordinarily a chattel. A chandelier wired into the ceiling is ordinarily a fixture.
If a seller wants to keep a chandelier for sentimental reasons, the APS should expressly exclude it. The parties should also specify whether the seller must install a replacement and what that replacement will be.
Owning the chandelier before installing it does not, by itself, preserve the right to remove it when selling the property.
Mirrors and bathroom accessories
A decorative mirror hanging from a picture hook may present a different case from a mirror glued to the wall or incorporated into a bathroom installation.
Similarly, a freestanding bathroom storage cabinet differs from a vanity connected to plumbing or cabinetry fitted permanently to the room.
The description “bathroom furniture” is too broad to resolve these questions. Identify the particular item and examine its attachment and function.
Appliances and building systems
A freestanding refrigerator or countertop microwave ordinarily presents a stronger case for classification as a chattel than an integrated appliance installed into cabinetry. Furnaces and central air-conditioning systems ordinarily form part of the property.
Buyers should nevertheless list the appliances they expect to receive, rather than rely on assumptions about classification.
A separate question is whether the seller owns the equipment. A hot-water tank, furnace or alarm system may be rented or financed. Classification as a fixture does not establish that the seller owns it free of third-party rights. The agreement should address any rental obligations or required payouts.
Cameras, video doorbells and smart-home devices
“Wireless” describes how a device operates; it does not establish whether it is a chattel.
A camera resting on a shelf differs from one mounted to exterior brickwork. A video doorbell replacing the conventional doorbell may have a different relationship to the property from a portable camera.
The parties should identify each device and its accessories. If the seller is taking the video doorbell, will the mounting plate also be removed? Will an ordinary doorbell be installed? If equipment stays, how will personal recordings, account access and subscriptions be handled?
These details are better agreed upon before closing than debated during the final walkthrough.
Televisions and wall brackets
A television and its bracket should be considered separately. The television may remain movable personal property, while a bracket secured to the wall may be a fixture.
The APS should specify whether the television, bracket and related equipment are included or excluded. If removal is permitted, it should also address exposed wiring and repairs.
The ability to patch the holes does not itself create permission to remove the bracket.
Outdoor items
Patio furniture and movable planters ordinarily present a stronger case for classification as chattels than fencing, a deck or a structure anchored to a foundation.
Other items, including sheds, gazebos, play structures and above-ground pools—require closer examination. Their attachment, integration with the property and intended function can vary considerably.
A label such as “portable” or “temporary” should not replace an assessment of the actual installation.
Put the answer in the agreement
The practical lesson is to identify uncertain items expressly. Buyers should list what they expect to receive, and sellers should clearly exclude fixtures they intend to take.
Where removal is agreed upon, specify what components may be removed, what must remain, and what repairs or replacements are required.
If the APS has already been signed and the parties disagree, resolve the issue in writing before removal. A clear agreement can prevent an inexpensive household item from becoming an expensive closing dispute.
Commercial leases: when can a tenant remove trade fixtures?
Commercial leasing introduces a separate question: even if an item is a fixture, can the tenant remove it as a trade fixture?
In 2105582 Ontario Ltd. v. 375445 Ontario Ltd., 2017 ONCA 980, the Ontario Court of Appeal identified three elements of the trade-fixture test:
Whether the asset was affixed to the ground by the tenant;
Whether the asset was used for trade or commercial purposes; and
Whether the asset could be removed without material damage to the premises.
This test concerns fixtures installed by a commercial tenant. It should not be confused with the general test for deciding whether an item is a chattel or a fixture.
The case involved installations associated with a driving range. The court upheld the finding that the disputed structural assets were removable trade fixtures. Their structural character did not, by itself, prevent removal.
What is material damage?
Material damage means damage of substance to the premises. Whether removal would cause such damage is a factual question involving the installation and the consequences of dismantling it.
The ability to repair damage may be relevant, but a tenant should not assume that promising repairs automatically establishes a right to remove the installation.
Trade fixtures versus leasehold improvements: practical examples
Trade fixtures generally serve the tenant’s trade or business and may qualify for removal. Other fixtures and improvements may become part of the premises and remain after the tenancy ends.
However, the categories can overlap in everyday usage. A lease may define “leasehold improvements” broadly enough to include installations that a tenant considers business equipment.
For that reason, classification should never depend solely on a label, who paid for the item or whether it can be unscrewed. Each item must be assessed case by case, considering its installation, commercial purpose, the consequences of removal and the lease terms.
Restaurant equipment
A commercial oven or refrigeration unit secured for safe operation may qualify as a trade fixture if installed by the tenant for its business and removable without material damage. Plumbing installed within walls, floor drains and permanent electrical upgrades are more likely to constitute improvements to the premises. An exhaust hood and ductwork require closer examination because they may be integrated into the building.
Retail stores
Display racks or counters bolted down for stability may qualify as trade fixtures. Permanent partitions, installed flooring and alterations to the storefront are more likely to be leasehold improvements. Custom display cabinetry can fall into either category depending on how it is incorporated into the space and what the lease provides.
Fitness and Pilates studios
Equipment secured for use in the tenant’s business may qualify as trade fixtures where removal would not materially damage the premises. New change rooms, showers and permanent flooring are more likely to be leasehold improvements. Wall-mounted mirrors and ballet barres require individual assessment: their business purpose alone does not establish a right to remove them.
Dental and medical offices
Treatment chairs and specialized equipment may qualify as trade fixtures, depending on their installation and removability. Plumbing within floors and walls, permanent room divisions and building-system upgrades are more likely to be leasehold improvements. The equipment and the infrastructure serving it should be considered separately.
Warehouses and manufacturing facilities
Bolted shelving, machinery and production equipment may qualify as trade fixtures. Foundations, loading-dock alterations and permanent structural additions are more likely to be improvements to the premises. Substantial size or attachment does not automatically prevent an installation from being a removable trade fixture.
What does the case law show?
In 2105582 Ontario Ltd. v. 375445 Ontario Ltd., 2017 ONCA 980, the disputed assets included a driving-range deck, canopy, ball shack, barrier-net poles and nets. The Ontario Court of Appeal upheld their classification as removable trade fixtures. At paragraphs 38–39, it addressed their installation by the tenant, commercial purpose and removal without material damage to the premises.
The decision illustrates that even structural installations can qualify as trade fixtures. It does not mean that every deck, canopy or similar structure is removable; the result depends on the facts and the applicable lease.
Address the equipment and the premises separately
A tenant may be entitled to remove business equipment while being required to leave, or restore, the infrastructure supporting it. For example, removal of a restaurant oven does not necessarily permit removal of the gas lines, ventilation system or electrical installation.
The lease should identify what the tenant may remove, what the landlord may require the tenant to remove, and who is responsible for disconnection, repairs and restoration. Paying for an installation does not, by itself, determine those rights.
The wording of the lease matters
A commercial lease may establish rights and obligations concerning:
Ownership of installations and improvements;
Items the tenant may or must remove;
Deadlines for removal;
Repair and restoration of the premises; and
Items left behind.
The timing and circumstances of the end of the tenancy also matter. Expiry, termination and forfeiture may affect removal rights differently.
Before installing significant equipment or altering leased premises, landlords and tenants should agree on what happens to those installations when the tenancy ends.
Prevent disputes with clear agreements!
For residential transactions, specifically identify uncertain inclusions and exclusions in the APS. If a disagreement arises after signing, obtain a written agreement before removing the disputed item.
For commercial leases, clearly define trade fixtures and leasehold improvements, and address ownership, removal rights, deadlines and restoration obligations.
Whether the question involves Anna’s furniture and video doorbell or a tenant’s commercial installations, the analysis must be made case by case. Clear drafting helps both parties understand their rights before removal becomes an issue.
At The Six Law Group, we assist buyers, sellers, landlords and tenants with residential real estate transactions and commercial leasing matters. Careful review and clear drafting can help prevent uncertainty about what stays and what can go.
SMP/MI
This article provides general information about Ontario law and is not legal advice. Classification, ownership and removal rights depend on the circumstances and the applicable agreement.