Why Declaring Exclusions in your property contract matters.

When it comes to property contracts, declaring exclusions can be one of those details that clients don’t always consider until they’re facing unexpected hiccups during a transaction. As a seasoned Realtor in Colorado, I’ve seen how important it is to get this part of the contract right. By handling exclusions upfront, you not only protect your interests but also prevent last-minute misunderstandings that can disrupt the closing process.

So, What Are Exclusions?

Exclusions in a property contract specify items that won’t be part of the sale. Typically, when a buyer walks through a property, they’ll assume that certain fixtures and features come with the home. Things like built-in appliances, custom lighting, and even wall-mounted TVs are often expected to stay put. But what if you have an emotional attachment to that chandelier your grandmother gifted you? Or maybe you’d like to keep the custom drapes in the living room that fit perfectly with your furniture?

This is where declaring exclusions becomes essential.

Why Declaring Exclusions Matters

Failing to declare exclusions can lead to complications. For instance, imagine a buyer walking into their new home only to find out that the beautiful front yard fountain they admired during showings is gone because the seller took it. In most cases, fixtures and items bolted or built into the property are assumed to come with it. Not disclosing these exclusions in the contract can lead to disagreements, and no one wants to end up in that situation.

How to Handle Exclusions as a Seller

When I’m working with sellers, I always recommend they list any exclusions they have in mind early on. Think about what items you’re truly attached to and would like to keep. If it’s something that could reasonably be assumed to stay with the home, then it’s a good idea to add it to the exclusions list in the contract. I also encourage my clients to go through their home room by room, identifying anything they want to keep that’s physically attached. This might include things like specific light fixtures, custom window treatments, or even a favorite rose bush in the garden.

Once we’ve got that list, I make sure it’s included in the contract to avoid any potential misunderstandings. Clear communication upfront goes a long way in keeping everyone happy.

For Buyers: What to Look Out For

If you’re on the buying side, make sure you’re asking questions during the walk-throughs. Don’t hesitate to confirm which items are staying. Your Realtor should be able to clarify what’s included versus what’s excluded, but it never hurts to be proactive. For instance, if that patio set makes the backyard look perfect, ask if it’s part of the sale. Remember, if it’s not spelled out in the contract, it’s safer to assume it’s not included.

Making Exclusions Clear in the Contract

When we’re filling out the contract, the goal is to be as specific as possible. If you’re excluding a particular item, don’t just write “light fixture.” Describe it in detail — for example, “the antique brass chandelier in the dining room.” Precision is key in preventing future disputes.

A Quick Note on Removing Items After Listing Photos

One tip for sellers: if you’re planning on excluding a particular item, it’s best to either remove it or replace it before taking listing photos. If a potential buyer sees it in the photos, they may assume it’s included. By addressing this from the start, you avoid those “Oh, I thought that was included!” moments.

Closing the Deal Without Surprises

The goal with any real estate transaction is to make it to closing day smoothly. Declaring exclusions upfront may seem like a small detail, but it’s a vital part of a clean, straightforward sale. When both parties know exactly what’s included (and what’s not), everyone walks away feeling good about the transaction.

By being upfront and specific with exclusions, you set the stage for a transparent and successful real estate deal — and peace of mind for both parties. After all, the best real estate transactions are the ones where everyone knows exactly what to expect.