Buyers should beware of water-heater rental agreements registered on title

There are new water-heater rental companies in the marketplace with a different approach to the usual month-to-month rental to which homeowners are accustomed. Lack of awareness can cause some complications when selling a home.
We recently encountered a situation where the sellers of a residential home had replaced their water heater with a new rental unit.
What they didn't realize was they had signed a 10 year rental contract, and the company registered a Notice of Security Interest against the title to their home. This unusual situation was not discovered until the purchaser's lawyer performed a title search and found the lien on title. They, of course, requisitioned the removal of the lien because they had to put the new lender in first position.
When the sellers inquired with the rental company, they were told it would cost more then $2,000 to cancel the rental agreement and purchase the hot water heater. Alternatively, it was suggested the purchasers assume the right and obligations under the contract and the contract be postponed in favour of the new lender.
Of course, the vendors were not interested in spending more the $2,000 to purchase the tank and were of the view the purchasers had agreed to take on the rental. The purchasers were of the view they did agree in the APS to take on a rental but they did not expect it to be so onerous.
The OREA agreements states: "The following equipment is rented and not included in the Purchaser Price. The Buyer agrees to assume the rental contract(s), if assumable."
In this case, the contract was assumable, and that is what happened. The purchases assumed the rental contract and the company postponed in favour of the new mortgage.
But this new breed of hot-water rental arrangement did and will continue to cause some anxiety. The buyers now find themselves bound to a rental contract over which they had no input relating to the terms, including the amount of the payments, the length or the maintenance and warranty.
It would be best if purchasers could find out if such a contract exists and deal with it at the outset, rather than waiting for it to be discovered the week of closing

Article from
Riopelle-Griener
Riopelle Griener Professional Corporation

THE ADVANTAGES OF SELLING IN THE WINTER

If you have been thinking of putting your house on the market for sale, but are waiting for the “Spring Market”, you should be aware that the Spring Market is NOW!!! The Spring Market is here!!

Many prospective Sellers feel that the Spring Market begins in April, May or June – once the garden is cleaned up and the flowers start to bloom. Not so!! Our Spring Market starts early in January and is so called because most Buyers who purchase at this time of year close the transaction in the Spring.

Most of us have exterior pictures of our homes that were taken in the good weather – pictures of the gardens, the patio or possibly the swimming pool. Marianne makes up an In House Listing Book for all her Sellers and she incorporates these good weather pictures into this book. If no such pictures are available, not to worry! Most Buyers realize that if the inside of the property is in good condition then the exterior is usually in the same condition.

So, get ahead of most of the other Sellers in your neighbourhood – put your property on the market for sale early in the new year – there is a great chance that yours will be sold while others are still getting ready.

For more details on the Spring Market, get in touch with Marianne Baird Anderson – she will be happy to give you a complimentary market assessment as well as outline her unique marketing strategy. You can reach her at marianne@kwottawa.ca or at 613-786-2447.