Home & Garden

Water Heater cancellation massive fee

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  • Dec 7th, 2017 10:43 am
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[OP]
Newbie
Mar 2, 2011
58 posts
11 upvotes
Ottawa
flafson wrote:
Jan 16th, 2016 8:22 am
I hate those contracts just as anyone but hard to argue against them.
I mean, depending on the water heater it may cost $1,000-$3,000 and you don't know how long you're going to stay in that house. Would it be better if you paid 2k upfront, sold the house a year or two later and have the new owner get a brand new heater that you had to pay for it? The new place you will be moving to will have the same problem and you will need to buyout another water heater.
It's a vicious cycle because rentals are so popular in Ontario.

For me personally, I bought a house last year, it had a 20 year old water heater inside, I was 1000% sure it was owned cause none (both sides real estate agents and previous owners) said otherwise and the thing is so old.
Turns out that the first gas bill I get a rental charge of ~$40. I get really pissed and do some phone calls and turns out even though it was 20 years old, it was still a rental. "Luckily" it was so old that buyout was only $80 so I did it and now it's mine.
Getting a similar rental one is ~$60 per month now and buying one is roughly $2,500. It's a combo unit that also heats up the house.
This could bite you too though, let's say one decided to keep the tank, rents it for 2 or 3 years and sells the house. A new buyer comes in and signs off on everything except the rental agreement so you have to buy it out or walk away for the house purchase and hope for another buyer. I'll be ensuring I don't ever get a rental again. I'm saving for a new house and not planning to sell this one though.
Deal Addict
Aug 15, 2015
4872 posts
1386 upvotes
ON
DarExc wrote:
Jan 16th, 2016 1:33 pm
This could bite you too though, let's say one decided to keep the tank, rents it for 2 or 3 years and sells the house. A new buyer comes in and signs off on everything except the rental agreement so you have to buy it out or walk away for the house purchase and hope for another buyer. I'll be ensuring I don't ever get a rental again. I'm saving for a new house and not planning to sell this one though.
Somebody who wants the house will not walk away because of the water heater. That is the reason builders can get away with putting them in new homes. If people didn't line up to buy the houses as they do now, these conditions would be more flexible for the buyers.
[OP]
Newbie
Mar 2, 2011
58 posts
11 upvotes
Ottawa
Ciel wrote:
Jan 16th, 2016 1:39 pm
http://www.thestar.com/business/persona ... seman.html

One of Ellen Roseman's more popular articles was about the hot water tank rental cancellations.
"Nov. 17, 2014: The Competition Bureau clears Reliance Comfort’s acquisition of National Home Services, subject to the terms of the agreement announced on Nov. 6." seems that portion is incorrect given they're exempt from it.
Jr. Member
Apr 27, 2015
133 posts
86 upvotes
Toronto, ON
Hi OP,

so were you able to get out of the contract for $200 or $450 as per your original post? I contacted them and got the same response ($450 for pickup and cancel or 1000~ to buyout). Now i'm thinking is there a good deal on a tank for about $600 or should i just buy them out. Thanks
DarExc wrote:
Jan 14th, 2016 9:12 pm
So I did some hunting and found out Reliance got in trouble and these fees shouldn't apply.

from CT-2012—002 COMPETITION TRIBUNAL

THE COMMISSIONER OF COMPETITION
Applicant
— and —
RELIANCE COMFORT LIMITED PARTNERSHIP
Respondent
CONSENT AGREEMENT

OBLIGATIONS RELATING TO RENTAL FEES AND EXIT CHARGES
7 iii a Rental Agreement termination charge not more than $200, where the
Customer’s water heater is less than one year old, and not more than $40 where
the Customer’s water heater is more than one year old but less than ten years
old;
v.
where the Customer or its Agent proceeds pursuant to subparagraph 5(c)(ii) of
this Agreement, a pick-up charge (not including draining or disconnection) not
more than $65 in respect of a natural gas water heater, and not more than $125
in respect of an electric water heater;
[OP]
Newbie
Mar 2, 2011
58 posts
11 upvotes
Ottawa
nkit88 wrote:
Jan 16th, 2016 6:39 pm
Hi OP,

so were you able to get out of the contract for $200 or $450 as per your original post? I contacted them and got the same response ($450 for pickup and cancel or 1000~ to buyout). Now i'm thinking is there a good deal on a tank for about $600 or should i just buy them out. Thanks
No, I haven't called back yet...it will be a fight, I am in touch with the Competition Bureau and Consumer Protection Ontario, both are helping, one is investigating. I was thinking of calling for service on my tank every day if they fight me. They will come and adjust the temperature on the tank if you ask. There doesn't appear to be a limit to this either and my wife and I like different temperatures so why do it myself if I'm paying them to?
Deal Addict
User avatar
Jan 2, 2012
1838 posts
760 upvotes
KINGSTON,ON
nkit88 wrote:
Jan 16th, 2016 6:39 pm
Hi OP,

so were you able to get out of the contract for $200 or $450 as per your original post? I contacted them and got the same response ($450 for pickup and cancel or 1000~ to buyout). Now i'm thinking is there a good deal on a tank for about $600 or should i just buy them out. Thanks
Depends on what type of tank you have and its age. $1000 for a gas power vent model under 5 years old is, at best, borderline acceptable, considering you could have a new tank installed, for about $1400 all in. These asshats have crunched the numbers, and know that customers will as well, so they intentionally inflate both the buyout price and the pick up/cancellation fee as a monetary disincentive to keep you from leaving. This is why, when you call to inquire about a buy out, they keep changing the numbers. Their customer retention staff are, I'm sure, on some kind of commission.

Just make a decision, and be done with them. The longer you feed them from the never ending teat, the long they will drain you.
Deal Addict
User avatar
Oct 18, 2003
1089 posts
72 upvotes
Remember in most cases you have had agreement signed before the real estate lawyer comes into the picture so you or your agent responsibility comes into action
MrFrugal1 wrote:
Jan 16th, 2016 11:39 am
You should have contacted your real estate lawyer. That's why you pay them. If it didn't stipulate in the Agreement of Purchase and Sale that the HWT was a rental, it was the seller's responsibility.
Penalty Box
Dec 25, 2004
2269 posts
218 upvotes
I called Reliance. Tried to get out of my rental. He said you have signed a contract. I said no I didn't. Then he said I assumed the contract when I bought the house. I explained I asked for a copy of the contract from National and they never sent it. Puts me on hold for 5 minutes, then asks for my email and sends it.

Voila. Now I have the contract. I tried to get out of it using the Competition Bureau Ruling. No dice he says. Does not apply. Reliance is prepared. They know exactly all the details of the ruling and that National contracts are exempted. Their cancellation department is very well trained.
[OP]
Newbie
Mar 2, 2011
58 posts
11 upvotes
Ottawa
MrFrugal1 wrote:
Jan 16th, 2016 8:18 pm
Depends on what type of tank you have and its age. $1000 for a gas power vent model under 5 years old is, at best, borderline acceptable, considering you could have a new tank installed, for about $1400 all in. These asshats have crunched the numbers, and know that customers will as well, so they intentionally inflate both the buyout price and the pick up/cancellation fee as a monetary disincentive to keep you from leaving. This is why, when you call to inquire about a buy out, they keep changing the numbers. Their customer retention staff are, I'm sure, on some kind of commission.

Just make a decision, and be done with them. The longer you feed them from the never ending teat, the long they will drain you.
Mine is 7 years old and non-powered vent and they want $1000. Still working on this....damned annoying.
Deal Fanatic
User avatar
Oct 22, 2007
6060 posts
1034 upvotes
Mississauga
DarExc wrote:
Jan 16th, 2016 8:00 pm
No, I haven't called back yet...it will be a fight, I am in touch with the Competition Bureau and Consumer Protection Ontario, both are helping, one is investigating. I was thinking of calling for service on my tank every day if they fight me. They will come and adjust the temperature on the tank if you ask. There doesn't appear to be a limit to this either and my wife and I like different temperatures so why do it myself if I'm paying them to?
Just out of curiosity, why would you need to keep readjusting the hot water tank temperature when each faucet in your home has a temperature adjustment. I know you're trying to give them a hard time but it really doesn't make sense to keep readjusting and I believe they will tell you the same thing.

I had the same issues when I purchased our home and took over the hwt rental agreement and there was no way to get out of it until the tank broke. At that point I told them to pick up the tank at the curb as I was done with renting.
Deal Addict
Sep 21, 2011
1042 posts
128 upvotes
Oh boy so that court ruling still doesn't work, I wonder what they will say when i call to cancel , I paid January 1st and got till April 1st for the next 40.00 dollar bill but may just cancel earlier, so I am a actually reliance customer not home services customer and I have a 2005 electric tank on a well lol wonder if they want 500 to cancel. Electric tanks can be bought from home depot for 220 plus tax lol this will be a good fight oh and I want to drop of the tank to lol I just want to give them the 40 cancellation charge and be done with these guys until my next house then rinse and repeat lol
Deal Addict
Nov 2, 2011
1204 posts
200 upvotes
I bought a new build condo a few years ago and it came with a reliance tankless rental $35.00 a month. My gas bill is less then that.
Didn't sign a contract as well, as you basically assume it with the purchase agreement, which didn't state anything about the provider or the actual price.

Huge rip-off. Only intend to be there for another year though.
Jr. Member
Nov 19, 2001
161 posts
17 upvotes
Ottawa
I bought a new build in 2013, rental water heater from Reliance came with the house. I simply called Reliance and told them I was getting my own tankless. I was able to buy a new tankless from Home Depot and the installers obviously removed my rented tankless. The thing weighs 10 pounds so I just picked it up and drove it to the depot. If anything, I had something like a $40 account closure fee (I might not even had to pay that - I cant remember)

I ended up paying $1600.00 all-in for: inspection of current tankless setup, supply and install of the Rheem EcoSense tankles water heater, new aluminum/metal venting for the new tankless (this cost about $200 of the $1600) as the original tankless only needed a plastic venting.

Probably the best money I have spent for the house as the Reliance bill was about $43 taxes in per month to rent the water heater. I break-even at 37 months - which will occur this June.

I think people with Enercare are completely screwed as you can't get out of the contract at all without buying out the tank - at least with Reliance you can get out with a small fee.

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