What conveys when you purchase (or sell) a home in North Carolina?

The quick answer is it depends on the contract. If your contract is written on the most common residential offer form in North Carolina, the “Offer to Purchase and Contract” (Form No. 2-T) which is jointly approved by the NC Bar Association and NC Realtors, then the answer is reasonably clear. If you have engaged a realtor in assisting you on your purchase journey, then most likely your offer to purchase contract will be written on a 2-T or you may have a real estate attorney draft the contract on your behalf.

2-T or an attorney drafted contract

I am unable to speak to the contents of an attorney drafted contract, but I do have specific knowledge of which fixtures would be included in your home purchase if your realtor uses a 2-T form to submit your offer.

I think of a contract as a set of rules for lack of a better term. This document is what will be used to resolve conflicts in or out of court. Here’s what I love and don’t love about NC’s 2-T:

            Love: Contract is just 17 pages, reasonably easy to read, and provides warnings within a red box in upper case letters about certain sections including this topic, Fixtures, (section 2 of the contract).

Don’t Love: The fact that most buyers and sellers will never read the document in full and prefer to follow the words of a realtor or friend.

How do we define a fixture in North Carolina?

The section of the 2-T to focus on when you have a question on what will be included in your home purchase is section 2 titled Fixtures and Exclusions. So, what is a fixture? The general definition of a fixture is an item that is permanently attached to the property and cannot be easily removed without causing damage to the property. The term “fixture” is controlled by North Carolina state law in which a Total Circumstances Test is used to determine whether an attachment is a fixture and therefore a part of the land. This test examines four factors:

1)        The intention of the person installing the attachment

2)     The permanent or temporary nature of the attachment

3)      The way the property was adapted to accommodate the attachment

4)      The relationship of the person installing the attachment

Fixtures as per the 2-T

If your realtor has used the 2-T form, all fixtures are included in the purchase price free of liens unless excluded in the contract. The 2-T has specified the following items as being included in the purchase price if and only if they are present on the property on the date of the offer & the item has not been excluded as per 2(d) or 2(e):

· Alarm and security systems (attached) for security, fire, smoke, carbon monoxide or other toxins with all related access codes, sensors, cameras, dedicated monitors, hard drives, video recorders, power supplies and cables; doorbells/chimes

· All stoves/ranges/ovens; built-in appliances; attached microwave oven; vent hood

· Antennas; satellite dishes and receivers

· Basketball goals and play equipment (permanently attached or in-ground)

· Ceiling and wall-attached fans; light fixtures (including existing bulbs)

· Exercise equipment/devices that are attached

· Fireplace insert; gas logs or starters; attached fireplace screens; wood or coal stoves

· Floor coverings (attached)

· Garage door openers

· Generators that are permanently wired

· Invisible fencing with power supply

· Landscape and outdoor trees and plants (except in movable containers); raised garden; landscape and foundation lighting; outdoor sound systems; permanent irrigation systems; rain barrels; landscape water features; address markers

· Mailboxes; mounted package and newspaper receptacles

· Mirrors attached to walls, ceilings, cabinets or doors; all bathroom wall mirrors

· Storage shed; utility building

· Swimming pools; spas; hot tubs (excluding inflatable pools, spas, and hot tubs)

· Solar electric and solar water heating systems

· Sump-pumps, radon fans and crawlspace ventilators; de humidifiers that are permanently wired

· Surface-mounting brackets for television and speakers; recess-mounted speakers; mounted intercom system

· Thermostats

· Water supply equipment, including filters, conditioning and softener systems; re-circulating pumps; well pumps and tanks

· Window/Door blinds and shades, curtain/drapery rods and brackets, door and window screens and combination doors, awnings and storm windows

Excluded Fixtures

A seller may decide to exclude a particular fixture, for example, a garage door opener because he just can’t let go of it for personal reasons. If that’s the case, the seller needs to exclude the garage door opener in 2(e), Other Items That Do Not Convey. Or, it may be that the garage door opener is leased from a company or belongs to his sister-in-law. However, if the garage door opener was not present on the date of the offer or the owner was not in possession of said garage door opener for any reason, the seller cannot be expected to provide it at closing to the buyer. If having a garage door opener, for example, is important to the buyer, they should ask the listing agent in writing whether one exists before writing the offer.

Tips for Buyers

1. Read fully a copy of the contract you will be signing days before making any offers.

   
   

2. Before viewing a property that you are interested in., highlight the personal property on the MLS Listing.

   
   

3. If you have decided to make an offer on the property, send a list of the personal property you would like to be included in the contract to your realtor

   
   

4. Once your realtor has prepared the contract for your review, check section 2, Fixtures and Exclusions to ensure that what you have discussed with your realtor has been included

   
   

Tips for Sellers

1. Before signing your listing agreement, discuss with your realtor the items that you would like to exclude from the sale. Ensure that your excluded items list is in writing to your realtor.

2. Once your property has been listed, ensure that none of your personal items have been listed on the MLS. For example, if you would like to keep your washing machine, check that the listing excludes it.

3. At the point that you receive an offer, check section 3, Personal Property, to ensure you have agreed to transfer the listed personal property items that the buyer would like to be transferred to them. Also, check section 2(e), Other Items That Do Not Convey, to ensure that the items you would like to keep, for example, outdoor cameras, are communicated in the contract.

As always, if you have any questions about fixtures or any other topic, please send me an email at CJ@ClaireSells.com. And, if you would like a copy of the 2-T, let me know.