When you sell your home, if you expect the Purchaser to take over any of your rental obligations, be clear, or you will end up paying for it yourself later.
The increasing popularity of Tankless Hot Water Systems has created some more confusion and shows what can happen.
When the Vendors sold their home, the section of the real estate contract titled “Rental Items (including Lease, Lease to own)” which specified items which were rented and NOT included as part of the purchase price, said “Hot Water Tank (if rental).” There was no specific mention of the hot water system being a “tankless” one which of course is what was installed.
After the deal closed, the Vendor continued to be billed for the monthly payments and the Purchaser refused to assume the contract. He stated that he had no knowledge of this contract prior to closing. And as there was no hot water tank as described in the “Rental Item” and the clause did not cover the “Tankless” system. Naturally a dispute arose after closing as to whether the term “Hot water Tank” could be interpreted to include “Tankless Hot water system”. The matter has yet to be resolved.
When Vendors expect Purchasers to assume rental contracts, including hot water tanks or other water heating systems, furnaces, air conditioners, water softeners and alarm systems, they must be precise about which contracts must be assumed by the Purchaser. The details of every contract should be disclosed, in the Agreement of Purchase and Sale so the Purchaser is aware of them.
We are Real Estate Specialists. Talk to us before signing your Agreement of Purchase and Sale.