MUST READ: Peel Region Votes To Lower Development Charges By 50%

Exclusions

Understand exclusions in Canadian real estate—how they affect what’s removed during a sale and how to ensure clarity in purchase agreements.

Exclusions

May 30, 2025


What are Exclusions?

Exclusions refer to items that are normally assumed to be part of a property sale but that the seller intends to remove before closing.

Why Do Exclusions Matter in Real Estate?

In Canadian real estate, exclusions must be listed in the Agreement of Purchase and Sale to clarify which fixtures or attached items the seller will not include in the sale.


Examples of exclusions include:
  • Chandeliers or custom lighting
  • Wall-mounted TVs or brackets
  • Built-in sound systems or mirrors



Since fixtures are generally included by default, sellers should clearly list exclusions to avoid legal disputes. Buyers should review this section closely to ensure their expectations are met.



Understanding exclusions helps prevent misunderstandings about what is or is not staying with the home after closing.

Example of Exclusions in Action

The seller excluded the dining room chandelier in the offer. This prevented conflict when it was removed before possession.

Key Takeaways

  • Items being removed despite being fixtures.
  • Must be clearly written into the offer.
  • Helps avoid post-sale surprises.
  • Includes lighting, brackets, and custom items.
  • Common source of buyer-seller disputes.

Related Terms

Additional Terms

Budgeting

Budgeting in real estate refers to the process of forecasting and managing income and expenses associated with owning, operating, or developing a property.. more

Tenant Improvements

Tenant improvements refer to custom modifications or build-outs made to a leased space to suit the tenant’s operational needs, often negotiated as. more

Highest and Best Use

Highest and best use refers to the reasonably probable use of a property that results in the highest value, provided it is legally permissible,. more

Gross Lease

A gross lease is a commercial lease where the tenant pays a fixed rent, and the landlord covers most or all operating expenses such as property. more

Brownfield

A brownfield is a property that was previously used for industrial or commercial purposes and is now vacant or underused, often requiring. more

Record of Site Condition (RSC)

A Record of Site Condition (RSC) is a formal document filed with a provincial environmental authority certifying that a property meets required. more

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