Home & Garden

Water Heater cancellation massive fee

  • Last Updated:
  • Dec 7th, 2017 10:43 am
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Newbie
User avatar
Dec 12, 2013
13 posts
1 upvote
Richmond Hill
kolider wrote:
Jan 19th, 2016 2:10 pm
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.
How did you manage to terminate your rental contract with Reliance? Did you simply say you want to cancel or did you have to fight back and push?

I'm trying to cancel but they are saying that I am unable to terminate my contract as the minimum rental agreement before terminating is 84 months (7 years).
Newbie
User avatar
Dec 12, 2013
13 posts
1 upvote
Richmond Hill
shawn01 wrote:
Jan 19th, 2016 9:43 am
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
The court ruling from http://www.ct-tc.gc.ca/CMFiles/CT-2012- ... 4_3504.pdf says the following is exempted

“Exempt Agreements” means:
i. Rental Agreements entered into prior to the Effective Date that are subject to
minimum 84 month terms;
ii. Rental Agreements acquired by Reliance through portfolio acquisitions between
January 1, 2007 and the Effective Date; and
iii. National Rental Agreements;
Sr. Member
Dec 30, 2007
987 posts
180 upvotes
Ottawa, ON
I've skimmed through this thread, and wish I could recall my experience with Reliance more clearly as this happened in 2013 when we were doing extensive renovations. Part of the renovations included getting rid of the electric hot water tank and replacing it with a natural gas hot water tank which we purchased.

At that time we had lived in our house for 8 years already, and the agreement was signed by the previous owners. So I suspect the term of the contract was complete, and we must have been on a "month to month" basis going forward. I called Reliance for details as to how to terminate the contract and what to do with the tank. Given its age I was told to dispose of it myself, or they could arrange for a pickup which I would then be charged for. My account would continued to be billed until I provided them with their sticker that had account information. I had my contractor dispose of the tank and I sent the sticker to Reliance. I received a $14.00 refund.
Jr. Member
Nov 19, 2001
161 posts
17 upvotes
Ottawa
chopstixs wrote:
Jan 19th, 2016 2:46 pm
How did you manage to terminate your rental contract with Reliance? Did you simply say you want to cancel or did you have to fight back and push?

I'm trying to cancel but they are saying that I am unable to terminate my contract as the minimum rental agreement before terminating is 84 months (7 years).
I think I went in with the approach of a 30-day cooling off period to decide if I wanted the tankless or not. I called them first and told them I did not want the tank. They put up a bit of fuss but said as long as I paid the account closure fee of $40.00 and returned the tankless in perfect condition to the depot, I can do what I want.

So I went ahead and changed it out before 30 days elapsed.

I recall reading the fine print and it did state I could leave at any time as long as the account closure fee was paid. If things changed since then, I can't say.

On a personal level, I feel the heater rental should be part of contract law which gives you 30 days to decide if you want to keep it or not. You get forced to sign off when you buy a new house, but when you take possession you should have an opportunity to escape...
Newbie
Nov 23, 2014
7 posts
2 upvotes
Newmarket, ON
We bought our house a year ago and the age of the home was 5 years. We were able to look at the rental agreement for the HWT. After seeing what they were paying for a five year old tank, we made it a condition that the tank be removed and the contract be cancelled. They agreed and paid about $300 to have the contract cancelled and the tank removed. We bought a tank from Lowes that was on sale and paid a local contractor with their gas license to install the tank. The tank was about $450 and the install was $150.
Deal Addict
User avatar
Jan 5, 2010
2138 posts
387 upvotes
I purchased my home in February 2015. I was told that the currrent rented tankless water heater was installed in August 2014. Will I be able to get out of my contract by paying the $40 fee? Or is this an "exempt" circumstance like mentioned previously? I am unsure if there was a water heater rental prior to that point.
Deal Addict
Aug 15, 2015
4853 posts
1372 upvotes
ON
jt05mi wrote:
Feb 15th, 2016 2:48 pm
I purchased my home in February 2015. I was told that the currrent rented tankless water heater was installed in August 2014. Will I be able to get out of my contract by paying the $40 fee? Or is this an "exempt" circumstance like mentioned previously? I am unsure if there was a water heater rental prior to that point.
Sorry to say you're FUBARed on this. Only applies within 30 days of installation. To get out you have to do a buyout. Call them to find out the exorbitant amount.
Deal Addict
User avatar
Jan 5, 2010
2138 posts
387 upvotes
dilligafeh wrote:
Feb 15th, 2016 3:56 pm
Sorry to say you're FUBARed on this. Only applies within 30 days of installation. To get out you have to do a buyout. Call them to find out the exorbitant amount.
There was mention on the first page of this thread of the updated contract regarding a $40 account closure fee for getting out of a rental which is longer than 1 year (or 200 for less than a year). Does this apply to my situation?
Member
May 26, 2007
469 posts
77 upvotes
I bought the water heater from them. Cost me the same as if I were to purchase a new one. They told me 1) no warranty on water heater-thats fine because its new and I dont care. 2) They wanted to charge me $10 for a receipt. Is that even legal?
Newbie
Mar 20, 2016
2 posts
So I'm investigating getting out of my contract.
Called Reliance last week.
They told me it will cost $1100 to buyout GW power vented unit installed in 2008.
So is there a difference between buyout and cancellation.
I'm with Enercare.
And am I covered by the competition bureau ruling?
Deal Addict
Oct 13, 2014
1023 posts
452 upvotes
Somewhere, ON
^^^^^

Are you with Enercare or Enbridge? Enercare is a supplier of hot water tanks, furnaces, etc, same as Reliance. Enbridge does the billing for those companies if requested by the homeowner but they only supply the gas otherwise.
Jr. Member
Feb 9, 2006
144 posts
33 upvotes
chrlin wrote:
Mar 21st, 2016 10:37 pm
So I'm investigating getting out of my contract.
Called Reliance last week.
They told me it will cost $1100 to buyout GW power vented unit installed in 2008.
So is there a difference between buyout and cancellation.
I'm with Enercare.
And am I covered by the competition bureau ruling?
Why would you call Reliance for a buyout price if you're with Enercare...?
Member
Sep 24, 2008
307 posts
51 upvotes
Oakville
peano wrote:
Jan 15th, 2016 4:17 pm
CT-2012—002 COMPETITION TRIBUNAL

"Exempt Agreements” means:
i. Rental Agreements entered into prior to the Effective Date that are subject to minimum 84 month terms;
ii. Rental Agreements acquired by Reliance through portfolio acquisitions between January 1, 2007 and the Effective Date; and
iii. National Rental Agreements"
I'm still struggling to understand whether my rental is Exempt or covered by this Competition Tribunal document.

Here's my story. I purchased my house (new build) in 2010 and moved into it in Oct 2012. At the time, the company was National Home Services. Sometime around June 2015, my bills switched from National to Reliance. I've never seen any contract from Reliance - but I do have the original terms and conditions from National - which does NOT mention anything about a minimum 84 month term (so I don't think I fall into Exemption #1). Since my contract switched to Reliance in 2015 (since its after the effective date of Nov 5, 2014) - I don't think I fall into exemption #2. Now for Exemption #3, my contract is no longer with National, but with Reliance now. So am I covered by this competition tribunal document?

I did call Reliance about a buyout and termination fees. Buyout on my almost 5 yr old tank is a ridiculous $2500! Cancellation is $500 plus tax and removal is another $125 (these cancelation costs seem consistent with my original National contract). FYI - I'm paying $42.38 each month - so over $500/yr to rent.

Thanks in advance for any help/guidance!
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
just bought a home and I am assuming a rental hot water tank from previous owner.

I'm going to have to call to see what my contract is but, based on others experiences, seems like I have to pay a fee to either

1) Cancel the contract and have then come pick it up for a fee

or

2) buy out the water tank and now I own it ?

I would like to replace it with a tankless water heater down the road

any advice would be appreciated.

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