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New homeowner unable to cancel water heater rental

  • Last Updated:
  • Nov 3rd, 2022 7:58 pm
[OP]
Member
Jul 18, 2007
445 posts
79 upvotes

New homeowner unable to cancel water heater rental

Hey everyone,

My friend purchased purchased a house recently. The property's water heater is a rental with Enercare. She called Enercare to cancel the water heater rental and was told that because the water heater is very new (Aug 2020), she is not allowed to cancel it. Instead they offered her 6 months free.

I just want to know if that is normal. Is she actually stuck with the contract the previous owner signed?

Thanks!
41 replies
Deal Addict
Feb 25, 2007
3027 posts
734 upvotes
yes, it's typical, it is stated on your purchase agreement to assume the rental
Deal Addict
Jun 16, 2009
3789 posts
2328 upvotes
Woodbridge
Cooling period is only 10 days from the day f closing and even for that one has to fight.
miorya wrote: Hey everyone,

My friend purchased purchased a house recently. The property's water heater is a rental with Enercare. She called Enercare to cancel the water heater rental and was told that because the water heater is very new (Aug 2020), she is not allowed to cancel it. Instead they offered her 6 months free.

I just want to know if that is normal. Is she actually stuck with the contract the previous owner signed?

Thanks!
HVAC Pro-Committed to customer, not brand. Past RFD Reviews
2022 Central Air Conditioner & Furnace Group Buy
Member
Nov 13, 2019
315 posts
104 upvotes
Toronto
She should be able to buy it out but the price depends on the age and make of the water heater (there's a chart if you Google enercare water heater buyout). Also, since it's pretty new, expect to pay a hefty price

Unless she specifically talked to the seller about the water heater and had them deal with it prior to the handover, unfortunately your friend is on the hook for it. The mention of the water heater is probably somewhere in all the forms she signed during the purchase. I'm surprised that either the lawyer or realtor didn't mention it

There's a huge thread on one of the biggest scams in Ontario here lol
Member
Nov 13, 2019
315 posts
104 upvotes
Toronto
newlyborn wrote: Cooling period is only 10 days from the day f closing and even for that one has to fight.
Do you mean the friend had 10 days from closing to successfully cancel the contract? I didn't even know that was possible lol
[OP]
Member
Jul 18, 2007
445 posts
79 upvotes
I just asked her about the buyout price. It's around $1200 to buy it out. Is it worth it to buy it out?
Member
Nov 13, 2019
315 posts
104 upvotes
Toronto
miorya wrote: I just asked her about the buyout price. It's around $1200 to buy it out. Is it worth it to buy it out?
How much is she paying /mo and how much time is left on the contract? $1200 seems kinda reasonable
Deal Fanatic
User avatar
Oct 16, 2008
9983 posts
4268 upvotes
Vaughan
miorya wrote: I just asked her about the buyout price. It's around $1200 to buy it out. Is it worth it to buy it out?
Sure? It's very cheap for that. Where is she located? Is there any conditions? How old is the tank?
...
Jr. Member
User avatar
Jun 5, 2017
182 posts
211 upvotes
At the Circus
miorya wrote: I just asked her about the buyout price. It's around $1200 to buy it out. Is it worth it to buy it out?
Electric or gas? 40g, 60g or 80gallons? Brand? Model? And current monthly payment?
Deal Addict
User avatar
Aug 18, 2008
3525 posts
1637 upvotes
Ottawa
About 1-2 years ago, Reliance & Enercare both changed their contracts for any new installations going forwards, so that your only options were now to continue renting or to buy it outight. You'd no longer have the option to return the tank to them.

However, people online have mentioned that one way to successfully* (after a couple months back and forth probably) argue and get out of it, is to immediately call the company after you take possession of the house, say you don't agree to the terms and also not pay any bills at all. YMMV technically.
Deal Addict
Jun 16, 2009
3789 posts
2328 upvotes
Woodbridge
We have replaced many tanks in the new built houses in different areas / different builders. Home owner have successfully got rid of the new tank with in first 10 days. I STRONGLY suggest to talk to the supplier BEFORE scheduling your own installation.
timofeewho wrote: Do you mean the friend had 10 days from closing to successfully cancel the contract? I didn't even know that was possible lol
HVAC Pro-Committed to customer, not brand. Past RFD Reviews
2022 Central Air Conditioner & Furnace Group Buy
Deal Fanatic
User avatar
Dec 4, 2009
7407 posts
3147 upvotes
There is no way buyout is $1200 for a 1 year old tank, from Enercare.

Op, your friend can opt to buyout or they're stuck with the contract, those are the choices. It's standard to include service rental agreements in real estate transactions. The buyer assumes the rental with the existing terms.
"I'm a bit upset. I've been grab by the back without any alert and lubrification"
Lucky
Deal Guru
May 1, 2012
10404 posts
10749 upvotes
Toronto
If the buyout is only $1200, I would buy that thing out in a heartbeat. I highly doubt it's only $1200 tho.
[OP]
Member
Jul 18, 2007
445 posts
79 upvotes
Gas, 40g, brand is Rheem. Model # ECEG40s-38N CN62.

$23/month and the heater was installed Aug 2020.
[OP]
Member
Jul 18, 2007
445 posts
79 upvotes
I'll ask her again to confirm but she did tell me initially it's around $1200.

I'm pretty new to this myself and will probably have to deal with this soon cause I recently purchased a place myself. So this is good information for myself as well.
Deal Addict
Feb 24, 2008
3314 posts
1924 upvotes
Mississauga
for $1200...buy that shit out and laugh...ensure you have confirmation that the contractual obligations are nullified and no further monthly fees will be charged...then laugh again
[OP]
Member
Jul 18, 2007
445 posts
79 upvotes
I told her to call verify the buyout price again. If it's $1200, maybe it's a good idea to buy it out after the 6 months free period is over?
Sr. Member
Dec 21, 2020
561 posts
490 upvotes
Based on that model number pretty sure it's the CV40 unit listed in that linked buyout table. So even 1200 seems high for the buyout.
Jr. Member
User avatar
Jun 5, 2017
182 posts
211 upvotes
At the Circus
miorya wrote: Gas, 40g, brand is Rheem. Model # ECEG40s-38N CN62.

$23/month and the heater was installed Aug 2020.
$1200/$23 = 4 years & 4 months. The water heater should last a good 10 years. Tell her to buy it at $1200 and to read the owner's manual for proper maintenance. Moreover, the $23/month will most likely increase as years go by.

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