When it’s time for a new furnace or central air conditioner, many London homeowners opt for renting heating and cooling equipment rather than buying outright.

However, the rental agreements typically contain clauses that register the equipment against the title of your property. Here are examples of the wording found in such agreements:

“We will register our interest in the equipment against you and/or against the title to the premises. To the extent permitted by applicable law, you will also pay us our standard charge, as revised by us from time to time without notice to you… to the extent permitted by law, you waive any right to receive a copy of any such registration and you appoint us as your lawful attorney for the purpose of doing such registrations.”

“This agreement and your rights and obligations under it may be assigned to, and assumed by, a third party (including any buyer of the premises), but only if we consent in writing (which consent may be arbitrarily withheld) and the third party agrees to assume your obligations under this Agreement… this Agreement is binding upon and will endure to your and our benefit and their respective heirs, personal representatives, successors and permitted assigns.”

So what does this mean for you?

Real estate lawyers are sounding alarm bells. When you wish to sell your property, there will be a lien on title against your property.

Consider the following questions:
1) Will prospective buyers be willing to assume your rental agreement?
2) Will the company who owns the equipment consent to the assignment to the buyer?
3) If it becomes necessary for you to “buy out” the agreement (to discharge the lien against your property), how much will it cost?

Before signing a home comfort rental agreement, read the fine print in the contract and consider getting legal advice.