Inclusions vs. Exclusions in Real Estate: What Stays and What Goes When Buying a Home

Understanding what is included in a home sale is critical to avoiding costly and disappointing surprises at closing. The key to protecting yourself is to confirm every detail in writing within the purchase agreement. This article explains how to differentiate between inclusions and exclusions, negotiate effectively, and ensure your contract reflects exactly what you expect to receive.

What Are Inclusions and Exclusions in a Real Estate Contract?

In a real estate transaction, an inclusion is an item that is considered part of the property and will remain after the sale. Conversely, an exclusion is an item the seller plans to take with them. These terms are legally defined in the purchase contract, and assumptions based on what you see during a showing can lead to disputes.

• Inclusions (What Stays): These are typically items that are permanently attached or built-in. Common examples include:

  • Built-in kitchen appliances (ovens, dishwashers)
  • Light fixtures and ceiling fans
  • Landscaping elements like shrubs and trees
  • Attached outdoor structures like sheds or pergolas

• Exclusions (What Goes): These are usually items considered personal property or that are easily removable. Examples are:

  • Freestanding appliances (refrigerators, washers, dryers)
  • Window treatments (curtains, blinds)
  • Furniture and decorative mirrors
  • Portable garden décor, such as potted plants or fountain pumps

The distinction isn't always intuitive. For instance, a television mount screwed into the wall is often an inclusion, while the television itself is an exclusion. This is why written clarification is non-negotiable.

How Can You Effectively Negotiate Inclusions and Exclusions?

Negotiating what stays and what goes is a standard part of the home buying process. Your offer should specifically list critical items to prevent misunderstandings. Based on our experience assessment, a clear, written offer protects both the buyer and the seller.

Here are practical strategies for successful negotiation:

• Prioritize Your Must-Haves: Before making an offer, decide which items are non-negotiable. Is the custom chandelier a deal-breaker? Is the shed essential for your storage needs? Knowing your priorities helps you negotiate from a position of clarity.
• Put Everything in Writing: Verbal agreements have no place in real estate contracts. Every agreed-upon inclusion and exclusion must be explicitly detailed in the purchase agreement. This documentation is legally binding once signed.
• Stay Realistic and Flexible: Sellers may have sentimental attachments to certain items. If the overall deal is favorable, be open to compromise on less critical items. A willingness to be flexible can make your offer more attractive.
• Ask Questions Early: During showings, if you are unsure whether an item is included, ask your real estate agent to inquire immediately. This prevents you from becoming emotionally attached to something that isn't part of the deal.
• Leverage Your Agent’s Expertise: A knowledgeable real estate agent understands local market norms and how to structure an offer that balances your needs with what is reasonable for a seller to accept.

What Legal Protections Do Written Inclusions and Exclusions Provide?

Once both parties sign the purchase agreement, the listed inclusions and exclusions become legally binding. A failure to adhere to the contract can result in a dispute that may delay closing or lead to legal action. For example, if a seller removes an item designated as an inclusion, the buyer may be entitled to compensation.

The following table illustrates common items and how they are typically classified, though this can vary and must be confirmed in the contract.

A real-world scenario highlights the importance of diligence. A buyer in Maryland noticed window air-conditioning units during a showing. The initial contract’s exclusions page was left blank. The buyer's agent rightly requested to add the units as inclusions. The returned contract unexpectedly also included a washer, dryer, and microwave. Once signed, these became enforceable. This underscores the need to review every page of your purchase agreement carefully before signing.

Final Thoughts on Securing Your Home Purchase

The process of buying a home is complex, but clarity on inclusions and exclusions is a manageable and essential step. By understanding the definitions, negotiating with clear priorities, and ensuring every detail is documented in writing, you can proceed to closing with confidence. Work closely with your real estate agent from the outset to document all agreements, ensuring you receive exactly what you expect on moving day.