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national home services water heater - cannot cancel the contract until 5 years gone?

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  • Aug 12th, 2016 3:58 am
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[OP]
Sr. Member
Nov 30, 2006
778 posts
11 upvotes
Richmond Hill

national home services water heater - cannot cancel the contract until 5 years gone?

Hi, I bought a house some time ago. I am the second owner.

Not sure what sort of contract was between the original buyer and NHS, but I didn't sign anything with them.

When I call them and try to buy it out, I get ridiculous prices like 1700 + HST (if buying out before 2 yrs) or 1500 + HST (if buying out after 2 years). Tank will be 2 years old soon. Now, I ask them how can I cancel, and they say that I cannot cancel until 5 years pass OR $1000 service charge to cancel the contract THAT I DIDN'T SIGN.

Can someone explain what can I do? Currently paying $30/month tax in.
46 replies
Sr. Member
Jan 12, 2011
850 posts
271 upvotes
Toronto
jimmi1977 wrote:
Mar 23rd, 2012 10:28 am
Hi, I bought a house some time ago. I am the second owner.

Not sure what sort of contract was between the original buyer and NHS, but I didn't sign anything with them.

When I call them and try to buy it out, I get ridiculous prices like 1700 + HST (if buying out before 2 yrs) or 1500 + HST (if buying out after 2 years). Tank will be 2 years old soon. Now, I ask them how can I cancel, and they say that I cannot cancel until 5 years pass OR $1000 service charge to cancel the contract THAT I DIDN'T SIGN.

Can someone explain what can I do? Currently paying $30/month tax in.


Please review your agreement of purchase and sale. In Clause 6 if it says that Hot water tank (Rental) then you own the contract. That is why Y2jversion1 and I ensure that we have a clause in our agreements to protect our Clients with long term contracts.
Riz1 Sales Rep. CENTURY 21 Titans Realty Inc. Brokerage
STOP paying high Realtor fees & say NO to the fine print!
[OP]
Sr. Member
Nov 30, 2006
778 posts
11 upvotes
Richmond Hill
riz1 wrote:
Mar 23rd, 2012 10:58 am
Please review your agreement of purchase and sale. In Clause 6 if it says that Hot water tank (Rental) then you own the contract. That is why Y2jversion1 and I ensure that we have a clause in our agreements to protect our Clients with long term contracts.

I wonder who lobbied in these crap water heater contracts with builders? On appliance that costs $500? Why not rental air conditioners (much more expensive appliance) or fridges? Why not rental furnaces? Smells like bull to me.

Guess I'll have to bite the bullet and buy it out anyways, just to undercut on the cash flow of these bad people.
Sr. Member
Jan 12, 2011
850 posts
271 upvotes
Toronto
I recommend you keep on fighting and esclating up the chain. It took us 6 months to win a battle with National but since we had all docuements saying we never assumeed the equipment we forced National to charge the previous owner the buyout cost of $10K for Hwt tank, AC and furance... No word of a lie but Y2jversion1 and I just never gave up for our clients. We got every penny back without a lawyer or small claims court....

The way I look at it is that it never hurts to try all someone can say is NO and until I don't get a NO i am going to try...
Riz1 Sales Rep. CENTURY 21 Titans Realty Inc. Brokerage
STOP paying high Realtor fees & say NO to the fine print!
[OP]
Sr. Member
Nov 30, 2006
778 posts
11 upvotes
Richmond Hill
What a ripoff... My parents are with Direct energy and paying 4.20+tax for a rental. This is actually reasonable given life expectancy of 15 years.

The difference is their house is 40 years old, mine is 2 years old. Same area.

So, once again:

National Home Services 25.95+TAX
Direct Energy 4.20+TAX

National home services is just a scam!!! Stay away.

Builder must have received a huge kickback from National home services to sell these ****** 5-year agreements. With $26 per month, you would have paid for the heater in 18 months.
Jr. Member
Nov 28, 2007
179 posts
3 upvotes
MAPLE
They can't hold you hostage for 5 years. buy it out, you should have that option. Whatever the cost is it's cheaper in the long run.
[OP]
Sr. Member
Nov 30, 2006
778 posts
11 upvotes
Richmond Hill
Finally reviewed my agreement of purchase and sale. The selling realtor forgot to include the rental clause :)

Does that mean I have no obligation to NHS? Where will NHS recoup their costs? Sue the realtor/first owner?
Deal Addict
User avatar
Dec 18, 2006
1838 posts
295 upvotes
jimmi1977 wrote:
Mar 30th, 2012 11:24 pm
Finally reviewed my agreement of purchase and sale. The selling realtor forgot to include the rental clause :)

Does that mean I have no obligation to NHS? Where will NHS recoup their costs? Sue the realtor/first owner?

May depend how long ago you purchased the property and what was identified on the listing and the agreement of purchase & sale.

In the case with our client, since it was caught on the first bill - Riz1 & I consulted the lawyer and pushed accordingly - in the end, we had the listing agent & seller on the hook to buy out the equipment from National Home and our client was refunded the money they had paid. Was it easy? No, it took a few months of constant follow ups and pushing all parties. We basically went to see the listing agent and advised her that she did not disclose the rental items (in our case, furnace, a/c + water tank) were in a long term contract with National and had indicated that all were owned. Since she didn't want to be reported to RECO & TREB, she and her client fully cooperating in resolution.

Speak to your agent & lawyer to see what can be done.
Full Service & FSBO MLS listings
RealEstate4Less (previously Homes4Less)

Jay R - Sales Representative
CENTURY 21 Titans Realty Inc Brokerage*
*independently owned & operated
Deal Addict
User avatar
Mar 24, 2008
1028 posts
77 upvotes
Etobicoke
jimmi1977 wrote:
Mar 30th, 2012 11:24 pm
Finally reviewed my agreement of purchase and sale. The selling realtor forgot to include the rental clause :)

Does that mean I have no obligation to NHS? Where will NHS recoup their costs? Sue the realtor/first owner?

As Y2J mentioned, may depend on how long ago you purchased?

Once you start to pay the monthly bill, you assume the contract in your name. Best to get your lawyer to clarify.
The only place you're going to find a helping hand, is at he end of your own wrist. Joe Mondello
Sr. Member
Jan 12, 2011
850 posts
271 upvotes
Toronto
Techhead wrote:
Mar 31st, 2012 7:04 am

Once you start to pay the monthly bill, you assume the contract in your name. Best to get your lawyer to clarify.


Not according to my discussions and written confirmation by National. Paying the bill is essential otherwise enbridge or your gas provider will come after you and ruin your credit. National identifies its your problem if you assumed the rental contract in the agreement of purchase and sale under clause number 6 or any other customized schedule or a written contract. Againif it's been a few months already it will be hard to prove. As everyone mentions consult your lawyer and agent.
Riz1 Sales Rep. CENTURY 21 Titans Realty Inc. Brokerage
STOP paying high Realtor fees & say NO to the fine print!
Newbie
Jan 19, 2013
6 posts
Woodbridge
Hi, unfortunately any contract from National Home services is a lock of 15 years max, make sure you leave a cancellation notice 60 days prior to term ending, as they will renew your contract automatically if you don't, be very cautious!!

I'd have to somewhat agree with you on this, but direct energy is also a scam, their cost which I've seen in most homes is more than $$27.95 + tax
Newbie
Jan 19, 2013
6 posts
Woodbridge
Here are some tips on reasons why you should rent rather than own a hot water tank,

1) maintenance coverage
2) company damage liability
3) assurance and dependability
4) 24 hr service
5) parts and labor
6) free tank installation and replacement

Reasons you shouldn't own

1) if your house floods from your store bought tank, your responsible for your water damage.
2) warranty not as good as the ones major companies provide.
3) try and find parts for your tank when its warranty is expired.
4) tanks sold in most stores are not as energy efficient
5) a majority of store tanks are not glass liner
6) the maintenance ppl don't come yearly to check manifold pressure nor do they flush the system yearly,


Always rent your tank, doesn't matter how long you rent for, $25 a month won't kill you especially since you'll have complete coverage and a sense of assurance,
Sr. Member
User avatar
Feb 17, 2004
730 posts
73 upvotes
Toronto
Sorry...but your advice about always renting a hot water tank.... is the worst advice you could have given.

Read this post. http://forums.redflagdeals.com/great-wa ... m-1126945/

flavioangela2002 wrote:
Jan 20th, 2013 9:24 pm
Here are some tips on reasons why you should rent rather than own a hot water tank,

1) maintenance coverage
2) company damage liability
3) assurance and dependability
4) 24 hr service
5) parts and labor
6) free tank installation and replacement

Reasons you shouldn't own

1) if your house floods from your store bought tank, your responsible for your water damage.
2) warranty not as good as the ones major companies provide.
3) try and find parts for your tank when its warranty is expired.
4) tanks sold in most stores are not as energy efficient
5) a majority of store tanks are not glass liner
6) the maintenance ppl don't come yearly to check manifold pressure nor do they flush the system yearly,


Always rent your tank, doesn't matter how long you rent for, $25 a month won't kill you especially since you'll have complete coverage and a sense of assurance,
Member
Jul 22, 2009
332 posts
27 upvotes
flavioangela2002 wrote:
Jan 20th, 2013 9:24 pm
Here are some tips on reasons why you should rent rather than own a hot water tank,

1) maintenance coverage
2) company damage liability
3) assurance and dependability
4) 24 hr service
5) parts and labor
6) free tank installation and replacement

Reasons you shouldn't own

1) if your house floods from your store bought tank, your responsible for your water damage.
2) warranty not as good as the ones major companies provide.
3) try and find parts for your tank when its warranty is expired.
4) tanks sold in most stores are not as energy efficient
5) a majority of store tanks are not glass liner
6) the maintenance ppl don't come yearly to check manifold pressure nor do they flush the system yearly,


Always rent your tank, doesn't matter how long you rent for, $25 a month won't kill you especially since you'll have complete coverage and a sense of assurance,
So which water heater rental company do u work for??

3 years of rental pays for one brand new water heater. If a water heater last on average 15 years that means the ripped off consumer is paying 5 times more than he should.
Deal Addict
Jun 16, 2009
1294 posts
211 upvotes
I dont agree with you on below . Have rented tank myself for decade but had never seen anyone coming in to adjust manifold pressure every year . It was not checked and adjusted even when GV and or Burner assembly was replaced . I am talking about 5 different instances .
Which part of country you get 24 hr service ..Pls let us know as I am very curious to know . How do you determine efficiency and what did you compared it with ??

P.S: I am not against renting but against ranting wrong reasons .
flavioangela2002 wrote:
Jan 20th, 2013 9:24 pm
Here are some tips on reasons why you should rent rather than own a hot water tank,

4) 24 hr service

Reasons you shouldn't own

4) tanks sold in most stores are not as energy efficient

6) the maintenance ppl don't come yearly to check manifold pressure nor do they flush the system yearly,


Always rent your tank, doesn't matter how long you rent for, $25 a month won't kill you especially since you'll have complete coverage and a sense of assurance,
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