Home & Garden

Water Heater cancellation massive fee

  • Last Updated:
  • Dec 7th, 2017 10:43 am
Tags:
None
Member
Sep 24, 2008
307 posts
51 upvotes
Oakville
phoenix_bladen wrote:
Nov 30th, 2017 10:37 pm
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.
You definitely have to call and ask what your buyout vs cancellation costs are. It really depends on the age of the tank...and how much your rental company wants to gouge you. When I called mine (Relliance) to get my options, I was quoted between $2k-$4k to buyout and between $300-500 to cancel (pickup was extra). So call a few times...as the prices seem to vary depending on who you talk to.
Newbie
Feb 3, 2012
68 posts
14 upvotes
T.O.
DarExc wrote:
Jan 18th, 2016 9:40 am
Mine is 7 years old and non-powered vent and they want $1000. Still working on this....damned annoying.
This sounds a lot like my situation, but the buyout is quite high. I paid 584+tax to buyout a 7 year old 50 gallon atmospheric gas water heater from Enercare.
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
Gee wrote:
Nov 30th, 2017 11:46 pm
Call and find out what your options are.
rfdnutz wrote:
Dec 1st, 2017 9:38 pm
You definitely have to call and ask what your buyout vs cancellation costs are. It really depends on the age of the tank...and how much your rental company wants to gouge you. When I called mine (Relliance) to get my options, I was quoted between $2k-$4k to buyout and between $300-500 to cancel (pickup was extra). So call a few times...as the prices seem to vary depending on who you talk to.
sputnik99112 wrote:
Dec 2nd, 2017 8:36 pm
This sounds a lot like my situation, but the buyout is quite high. I paid 584+tax to buyout a 7 year old 50 gallon atmospheric gas water heater from Enercare.

So I called to inquire about a buyout and here are my options -> My tank is since Jan 2013 and the previous owner is paying $34.18 a month including taxes (which I find a lot)


Before the 5 year mark ->

• $1072.50 + HST – Drain, disconnect and removal from the home.

• $1072.50 + HST Pickup from the first floor from home or garage/outside.

• $600 + HST Dropped off to our nearest drop off location.



After 5 years -> Basically I would have to wait until Feb 2018

-$472.50 +HST Drain, disconnect and removal from home

- $472.50 +HST Pickup

- $0 to Drop off

So looks like my best option is to wait until Feb 2018, and disconnect it myself (or have someone install a new one and disconnect the old one for me) and then drop it off myself so I would be charged $0
Deal Expert
Aug 2, 2004
25876 posts
2880 upvotes
East Gwillimbury
phoenix_bladen wrote:
Dec 4th, 2017 2:44 pm
So I called to inquire about a buyout and here are my options -> My tank is since Jan 2013 and the previous owner is paying $34.18 a month including taxes (which I find a lot)


Before the 5 year mark ->

• $1072.50 + HST – Drain, disconnect and removal from the home.

• $1072.50 + HST Pickup from the first floor from home or garage/outside.

• $600 + HST Dropped off to our nearest drop off location.



After 5 years -> Basically I would have to wait until Feb 2018

-$472.50 +HST Drain, disconnect and removal from home

- $472.50 +HST Pickup

- $0 to Drop off

So looks like my best option is to wait until Feb 2018, and disconnect it myself (or have someone install a new one and disconnect the old one for me) and then drop it off myself so I would be charged $0
What’s the buyout cost after February 2018. All you listed are the options to return the tank
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
Gee wrote:
Dec 4th, 2017 3:13 pm
What’s the buyout cost after February 2018. All you listed are the options to return the tank
Oh yes forgot to list it.

It's a ridiciolous ->

Before 5 years -> 1405.80 + HST

After 5 years (Feb 2018) -> 1306.65 + HST

What a scam !

At this point, I think it's best to drop it off for them after Feb 2018.

I've asked to get a copy of the contract and the lady said she will send it to me after I send in some documents stating I am the purchaser of the new home. So I sent her a portion of my agreement of purchase.

Haven't heard back yet.
Deal Expert
Aug 2, 2004
25876 posts
2880 upvotes
East Gwillimbury
phoenix_bladen wrote:
Dec 5th, 2017 1:04 pm
What a scam !
If you haven’t taken possession, then I suggest you not pay the invoice and try to muscle your way out of the contract.
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
Gee wrote:
Dec 5th, 2017 1:19 pm
If you haven’t taken possession, then I suggest you not pay the invoice and try to muscle your way out of the contract.
I wish I can do that.

But as part of the agreement when purchasing the home, I am suppose to take over that contract. It was written into the agreement.

I guess I could have asked the owner to buy out the contract as a condition for me to purchase the home. But I think it's kinda of hard to walk away from the agreement over a HWT

I don't know if I will be violating any rules, if I were to do so.

I think best case scenario would be for me to wait until Feb 2018 and then install a new 'tankless water heater' and have that person also disconnect the old so I can drop it off the depot at $0
Deal Expert
Aug 2, 2004
25876 posts
2880 upvotes
East Gwillimbury
phoenix_bladen wrote:
Dec 5th, 2017 4:24 pm
I wish I can do that.
I did it when I took possession of my home. I was under contract from the previous owner and I refused the terms. Didn’t make a single payment for 3 months. Once you make a payment, you accept the terms.
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
Gee wrote:
Dec 5th, 2017 4:45 pm
I did it when I took possession of my home. I was under contract from the previous owner and I refused the terms. Didn’t make a single payment for 3 months. Once you make a payment, you accept the terms.
When u bought your home under the purchasing agreement. Did you have the HWT rental as part of the items written into the contract ?
Deal Expert
Aug 2, 2004
25876 posts
2880 upvotes
East Gwillimbury
phoenix_bladen wrote:
Dec 5th, 2017 6:19 pm
When u bought your home under the purchasing agreement. Did you have the HWT rental as part of the items written into the contract ?
Yes I did. First thing when I moved in was call Enbridge and told them to remove all third party billing. Then I waited for Cricket to call me. It took three months. Told them that I never agreed to the amount ($54) and the annual $5 increase.
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
Gee wrote:
Dec 6th, 2017 4:06 am
Yes I did. First thing when I moved in was call Enbridge and told them to remove all third party billing. Then I waited for Cricket to call me. It took three months. Told them that I never agreed to the amount ($54) and the annual $5 increase.
Oh so when you called Enbridge to remove the 'hot water heater' charge, they did so without question right away?

I'm just wondering, because the total amount of the Enbridge bill would be gas + the rental. So unless you paid only a portion of the bill, it should have been lumped together as one.
Deal Expert
Aug 2, 2004
25876 posts
2880 upvotes
East Gwillimbury
phoenix_bladen wrote:
Dec 6th, 2017 11:32 am
Oh so when you called Enbridge to remove the 'hot water heater' charge, they did so without question right away?

I'm just wondering, because the total amount of the Enbridge bill would be gas + the rental. So unless you paid only a portion of the bill, it should have been lumped together as one.
Yes they removed it right away. It wasn’t their money. They were collecting for a third party.

On the invoice they break down the charges and I refused to pay the rental fees. Don’t you think $54 is excessive for a 50 gallon rental?
Deal Addict
User avatar
Jan 2, 2012
1827 posts
756 upvotes
KINGSTON,ON
Gee wrote:
Dec 5th, 2017 1:19 pm
If you haven’t taken possession, then I suggest you not pay the invoice and try to muscle your way out of the contract.
I agree with Gee.

The Agreement of Purchase and Sale is between you and the seller. It's declared as a rental HWT on the Agreement of Purchase and Sale so you can't come back after closing and sue the seller for non-disclosure.
Enbridge has no part of it whatsoever, and they will never receive a copy of that document, just like you most likely don't have copy of the rental contract the previous owner signed.
However, as soon as you make the any payment to them, you'll assume the rental contract terms and conditions, regardless of whether you signed any rental contract or not.
If you wade through the Great Water Heater Scam thread, you'll find lots of posts where people made that mistake.

I suggest you move in to your new home, and immediately contact them to have their equipment removed. They may try and give you some B.S., but don't fall for it. If they stonewall you further, contact your closing real estate lawyer. Even if you had to pay your lawyer to draft a letter to Enbridge, it'll be less than $1306.65 +HST.
Jr. Member
Dec 12, 2007
117 posts
10 upvotes
Toronto
MrFrugal1 wrote:
Dec 6th, 2017 2:58 pm
I agree with Gee.

The Agreement of Purchase and Sale is between you and the seller. It's declared as a rental HWT on the Agreement of Purchase and Sale so you can't come back after closing and sue the seller for non-disclosure.
Enbridge has no part of it whatsoever, and they will never receive a copy of that document, just like you most likely don't have copy of the rental contract the previous owner signed.
However, as soon as you make the any payment to them, you'll assume the rental contract terms and conditions, regardless of whether you signed any rental contract or not.
If you wade through the Great Water Heater Scam thread, you'll find lots of posts where people made that mistake.

I suggest you move in to your new home, and immediately contact them to have their equipment removed. They may try and give you some B.S., but don't fall for it. If they stonewall you further, contact your closing real estate lawyer. Even if you had to pay your lawyer to draft a letter to Enbridge, it'll be less than $1306.65 +HST.
oh shoot, i think i made a mistake then

so basically when i called in to inquire about the cancellation, one of the agents asked me to send me section 6 on my agreement offer, showing that I would be assuming the contract. She basically told me, she wouldn't want to show me the contract unless I am the actual person taking over the property.

So i didn't think it was a big deal at the time and so i sent her a screenshot of the section where it states that the HWT is 34.18 and that buyer assumes the contract etc etc.

So if I now do what you guys have stated above, then they can come back to me and say 'well u showed me this ....', and i would be in trouble?

Any advice would be great !

Top