Hi, Mitch Argon here with CalNeva Realty. I get asked this question often by my agents, and if they don’t ask, we usually will have a problem with the escrow. And the question is, “What do I do if my client is buying a home that includes systems, or if I’m taking a listing and the home that my client is selling includes systems?”


And by systems, what I’m talking about are things like solar systems, security systems, and sound systems. So the real question is where does the fixture in that system start and stop? And where does the personal property in that system start and stop?


Let me give you a quick example with a sound system. The wiring in the wall and a built in speaker would logically be fixtures. What about those things that are connected to the wires and the sound system? Does a sound system include a receiver? Does it include a turntable? Does it include speakers that are wirelessly attached to those devices for example? It’s all part of the sound system. That’s what makes sound, but what is included in the sale and what is not as a fixture or personal property?


So what you want to do is make sure that you’re 100% clear when you’re doing a contract. This will avoid the confusion of the buyer or seller thinking they’re going to keep something or give something up because they’re all going to think they probably are going to have it and they can’t both have it. Right?


So I’m going to share with you a little tip here just to put in your contract when you’re dealing with systems. A quick summary, be careful with systems. Here’s just three that I mentioned here, and the thing you want to ask yourself, ask your client, where does the fixture stop? Where does the personal property stop or start?


So down below, you can see an example of language that might go into additional terms on a contract. Maybe it goes under a counter offer if you’re on the listing side, and it’s a real simple example. “Security system to be transferred with the property. Includes wiring, keypad, and two indoor and four outdoor cameras, at no cost and no value.”


So the idea here is we want to be very, very explicit so both buyer and seller don’t think that they’re getting or leaving something that they’re not really going to. I hope this tip helps you to add value to your client relationship and your experience. Make a note of it, use in your next contract, it’ll serve you well. Until the next time, have a great day. Thanks.