Item 6 of the Ontario Real Estate Association Form 100 (Agreement of Purchase and Sale) refers to Rental items and in most real estate transactions, a hot water heater will be listed as a rental equipment; excluded from the sale price and for which the buyer agrees to assume rental responsibility.

Before a rental hot water heater is installed at a residence, the property owner signs a contract clearly stating terms and conditions and are therefore able to go into the agreement from an informed position.

In the case where the property is being sold, buyers do not have access to the rental contract (as they do not own the property yet) and with the language in the Agreement of Purchase and Sale all but mandating prospective buyers to take over the rental, buyers get stuck with an equipment which in many cases is really old or they simply might not want or need. To make matters worse, some rental companies (like Enercare) have decided that the end of life of their water heater will be determined by them, essentially leaving a buyer at the mercy of their judgement.

I believe that the following need to be put in place to find common ground between all stakeholders:

1.      Buyers should have the option to choose whether they would continue the rental.

2.      In the case where buyers wish to continue the rental, sellers should be made to provide a copy of the rental contract to the seller, followed by a signed agreement between the buyer and the rental company.

3.      Where a buyer is not interested in assuming rental responsibilities, they should not be mandated to buy out the equipment.