What is a Fittings and Contents Form?
When a property is being sold, the seller will complete a Fittings and Contents form which provides a list of items that the seller will leave behind, or take from the property following completion.
During the conveyancing process the Fittings and Contents form will be sent to the buyer’s solicitor with the initial contract pack. The contract pack is provided to the buyer for review and this allows them to understand what items are included or excluded from the property they are purchasing. Alternatively the seller can select that there are no such items at the property.
The Fittings and Contents form also contains a section for the seller to include a price for any item if they wish to offer it for sale to the buyer. If a price is agreed between the parties (or via the estate agents) it is important you inform your legal representative who can ensure the agreed price is included in the sale contract.
It is also important that any additional sum paid for items correctly reflects the value of the items and can be justified in the event that there is a query over Stamp Duty Land Tax. Certain fixtures and fittings will be considered part of the land or property and would attract Stamp Duty Land Tax. Examples would include bathroom and kitchen fittings, but not carpets, curtains or free standing furniture. If you agree to purchase a property for £250,000 and agree to pay £3,000 for the kitchen fittings, you would be charged Stamp Duty Land Tax on £253,000. If however the purchase price is £250,000 and you agree to pay £500 for the carpets, you would still only pay Stamp Duty Land Tax on the price of £250,000 (provided the price for the carpets can be justified – for example in the light of their age and condition).
The Fittings and Contents form will be attached to the contract and once exchange takes place, this will become binding on both parties. Therefore if, for example, the seller removes an item they have stated would be included, they would be in breach of contract.
If you would like further information, please contact Coffin Mew’s conveyancing team.