Purchasing a home is a big investment and involves many responsibilities.  It may be overwhelming at times.  Unfortunately, the joy of home ownership may be complicated by unfair business practices targeted at unwary home owners.

Typically, when buying a previously occupied home, one simply takes over the previous homeowner's existing water heater agreement.  However, the matter may not end there.  In recent years, there have been growing complaints about water heater agreements entered into with door-to-door salespersons.  In 2011, these agreements were the second most common complaints received by the Ontario Ministry of Consumer Services.  There is a growing concern that some businesses and salespersons are using aggressive or misleading practices to pressure homeowners into entering into rental agreements.  There are some simple tips to avoid being pressured into entering into a water heater agreement you may come to regret.

Things to Do Before You Sign

First, ask for identification.  Sometimes, salespersons try to enter your home and convince you to sign a new water heater agreement by suggesting they have been sent by your existing provider to do a maintenance inspection.  In addition, ask about rental fees, installation, repair and extra service charges, warranties, and make sure you get all of those details in writing.  Taking such steps will make it less likely that you will enter into an agreement with hidden fees or surprise terms and conditions.  But make sure the written agreement matches what you are told.  Do not rely on promises.  Make sure everything is in the written agreement.

Legal Recourses

Even if you find yourself having entered into a water heater agreement that you wish you could get out of, the Consumer Protection Act provides several remedies to protect your rights.  For instance, under section 22 of the Act, all future performance agreements like water heater rentals must be in writing and a copy of the contract must be provided to the consumer.  The agreement must also give you information on what your rights are.  If it does not, you may cancel the contract without penalty.

In addition, businesses cannot engage in unfair practices.  Unfair practices include, among other things, false, misleading or deceptive representations made when entering into a contract.  Unlike in other areas of the law, there is no need to prove that you relied upon or would not have entered into the contract without the misrepresentations.  As long as the business engaged in unfair practices during the making of the agreement, you are entitled to cancel the agreement within a year of entering into it.  In some cases it may not be possible to rescind the agreement because the return of the goods or services is no longer possible or because an innocent third party has obtained rights to the subject matter of the agreement.  In such circumstances, a consumer may commence a legal action and sue for damages instead.

Do You Need a Lawyer?

Given the relatively low cost of typical water heater rental agreements, it may not seem economically sound to retain a lawyer to assist in cancelling the contract or pursuing damages.  Many consumers, armed with knowledge of their rights under the Consumer Protection Act, may wish to attempt to resolve such a matter on their own.  However, some rental businesses may try to insist on large cancellation fees, usually when the consumer wishes to have an unwanted water heater removed.  In such circumstances, it may be prudent to seek assistance from a lawyer.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.