Beware! Home Equipment Rentals Can Lead to Unexpected Property Liens
Always read the fine print when you rent home equipment like furnaces, A/C, HVACs and water softeners.
Home owners may think they are buying a furnace, air conditioner or water softener on a payment plan. Be sure that the document is NOT in fact a rental agreement with a payment stream totalling huge amounts over its lifetime.
In March, 2018, the Ontario government banned door-to-door sales of certain equipment, but it did not prohibit the registration on property titles of liens known as notices of security interest. As a result, when the registered notices are discovered, usually at the time of sale of the property, the finance companies often squeeze homeowners for high buyout payments.
Discovering these liens is a very common experience in Ontario law offices. Owners who are selling or refinancing their homes often have no choice but to pay the inflated sums for a lien discharge. This is after the homeowner has already paid thousands of dollars in rental fees before ‘buying out’ the contract, which makes the disparity between fair retail value and the amounts charged even more obscene.
Our Experience Is Your Advantage!
If you are considering buying or selling a home and would like advice or more information, please contact me for a no-obligation consultation.
Call Lynne Blott at 416-540-7307 or e-mail at lynne@lynneblott.com
