Built-Ins

Built-Ins Defined

Built-ins encompass appliances, machinery, and other equipment that are integrated into the structure of a building. Unlike freestanding and movable equipment, built-ins become part of the real estate. Consequently, when a property is sold, built-ins are generally included in the transaction and are classified as real property.

Examples of Built-Ins

Kitchen Cabinets: Permanently installed cabinets in the kitchen are considered built-ins and, therefore, real property.
Oven and Range: If an oven and range are built into the kitchen, they are considered part of the real estate.
Central Air Conditioning System: An integrated central AC system, as opposed to a window unit, is a built-in fixture.
Built-in Bookcases: Shelves and bookcases that are permanently affixed to walls in a study or living area.
Wired Lighting Fixtures: Overhead lights and chandeliers that are permanently attached to the building’s electrical system.

Frequently Asked Questions

Q1: Are built-ins considered real or personal property? A1: Built-ins are typically considered real property because they are permanently affixed to the structure.

Q2: What is the difference between built-ins and freestanding appliances? A2: Built-ins are integrated into the building, while freestanding appliances can be moved and are not attached to the structure.

Q3: Can built-ins affect the sale price of a home? A3: Yes, built-ins can add value to a property and may influence the overall sale price.

Q4: How are disputes over built-ins usually resolved during a sale? A4: Disputes are generally resolved by referring to the terms of the sales agreement, which should explicitly define what is included in the sale.

Fixture: An item that is attached to the property in such a way that it becomes part of the real estate.
Personal Property: Movable items not permanently attached to the real estate, thus not included in the property sale.
Real Property: Land and anything permanently affixed to it, including buildings, structures, and built-ins.

Online Resources

References

“Real Estate Principles” by David M. Sirmans and Christian Sirmans
“Essentials of Real Estate Economics” by Dennis J. McKenzie and Richard M. Betts

Suggested Books for Further Studies

“The Complete Guide to Real Estate Investing” by David J. Dewilde
“Real Estate Law” by Marianne Jennings
“Real Estate Principles: A Value Approach” by David Ling and Wayne Archer

Real Estate Basics: Built-Ins Fundamentals Quiz

### What are built-ins typically considered in real estate transactions? - [x] Real Property - [ ] Personal Property - [ ] Moveable Assets - [ ] Freestanding Equipment > **Explanation:** Built-ins are usually considered real property because they are permanently affixed to the structure of the building. ### Do built-ins add value to a property? - [x] Yes - [ ] No > **Explanation:** Built-ins can add value to a property, influencing the selling price. ### Are freestanding appliances considered built-ins? - [ ] Yes - [x] No > **Explanation:** Freestanding appliances are not built-ins as they are movable and not integrated into the building structure. ### Can a central air conditioning unit be classified as a built-in? - [x] Yes - [ ] No > **Explanation:** A central AC system is built into the property and is considered a built-in. ### Which of the following would not be a built-in? - [ ] Kitchen Cabinets - [x] Standalone Refrigerator - [ ] Built-in Oven - [ ] Central Heating System > **Explanation:** A standalone refrigerator is not a built-in as it is freestanding and movable. ### Are wired lighting fixtures considered personal property? - [ ] Yes - [x] No > **Explanation:** Wired lighting fixtures that are permanently attached are considered real property, not personal property. ### In what type of property sale are built-ins usually included? - [x] Real Property Sale - [ ] Personal Property Auction - [ ] Garage Sale - [ ] Car Sale > **Explanation:** Built-ins are typically included in real property sales as they are considered part of the real estate. ### Can built-ins be part of a depreciation calculation in taxes? - [x] Yes - [ ] No > **Explanation:** Built-ins, as part of the real property, can be included in depreciation calculations for tax purposes. ### What type of agreement should define the inclusion of built-ins in a property sale? - [x] Sales Agreement - [ ] Lease Agreement - [ ] Verbal Agreement - [ ] Purchase Order > **Explanation:** The sales agreement should clearly define the inclusion of built-ins to avoid disputes. ### Is a built-in bookcase considered movable and personal property? - [ ] Yes - [x] No > **Explanation:** A built-in bookcase is permanently affixed to the building and is considered real property.