Water Heater and Furnace Rental Class Action

[homebuyer_2017]

We recently purchased a Urbandale home and moved in few weeks ago, while reading the WATER HEATER clause in our purchase agreement it states that:

"The purchase acknowledges that the water heater installed in the Dwelling shall be a rental unit and hereby appoints the Vendor as his/her agent for the purpose of entering the supplier's standard water heater rental agreement, if required. The rental agreement will take effect between the Purchaser and the supplier on the Closing date. The Purchaser shall indemnify and save harmless the Vendor from all expenses, claims or damages related to the aforementioned water heater rental agreement. The purchaser understands that rental information, including the supplier's standard rental terms and conditions and the current monthly rental rates (which may change from time to time), will be provided either at or prior to the time of closing or with first rental bill."

We have NOT signed any contract with Enercare for any specific terms as of yet. Called them last week and they mentioned its 39.99 plus HST which might be around $45/month. Still have not received any bills from Enbridge yet.

Model Number: 6G5076NV-C02 (Gas water heater tank - 50 Gallon) - 6 years warranty for both Tank and parts.

Buyout schedule is as below:
https://www.enercare.ca/sites/defaul...t-schedule.pdf

I went to HomeDepot today and they have the Rheem PERFORMANCE Natural gas water heater tank for 858+HST and $300 for installation.

What would be the best course of action in my case? Can i still get out of the rental contract and purchase my own? Any help would be appreciated.

[Sarah2012]

My personal opinion is that you should request proof that the builder did, in fact, enter into the rental agreement with Enercare. If they can send you a copy of the signed rental agreement with your builder's signature, then I would say you are locked into it. But if Enercare did not "require" your builder to sign the agreement, then the language would suggest that you aren't under contract to them. ......But I'm no lawyer!

[jemy1415]

From what I read from this forum and others experiences, as long as you didn't sign anything yet with Enercare/haven't paid a bill, you aren't under a contract with them. Some people have just asked them to come take the unit after they installed their own. (This is what I plan to do, once I move in next year).

[suezuki650]

Different people are with different builders and the contracts aren't all the same. I would check with my lawyer before just assuming because it worked for someone it would for everyone. I ended up buying out my contract even though it was more expensive than buying something somewhere else. My contract with my builder had a schedule Z that I interpreted as agreeing to a rental tank even though I had not signed anything with the rental company at that time.

I'm still further ahead than if I rented.

[thatguy]

My lawyer said that Mattamy's Schedule Z is a proper legal agreement and by signing it I have to either rent the tank from the rental company who installed it in my home, or pay the buyout. There is no third (legal) option.

[dvg]

I just dont see how a blank cheque (Lets be real, thats what this is) can be legally binding...

[suezuki650]

Originally Posted by dvg

I just dont see how a blank cheque (Lets be real, thats what this is) can be legally binding...

That's just it, it's not a blank cheque as they tell you it's their regular rates, which if you go to their website you can see, and if you ask your salesperson they will tell you. At my design appointment I could choose which tank was installed.

As well, their buyout includes not only the tank but the cost of installing a new tank without the infrastructure already being there. This would be similar to switching from electric to gas. There are extra costs.

In some cases people still managed to get out of their contract, probably because the company didn't think it was worth their while to fight it.

I'm just suggesting that people check with their lawyer so that they know where they stand one way or another. I don't think it's a slam dunk for everyone.

[homebuyer_2017]

Lawyer mentioned "only option would be to cancel in accordance with the Enercare (hot water rental company) terms". Let's see how it goes with Enercare now.

[ericguy]

Originally Posted by homebuyer_2017

Lawyer mentioned "only option would be to cancel in accordance with the Enercare (hot water rental company) terms". Let's see how it goes with Enercare now.

If people don't like it then they should just write complains to the Ontario Competition Bureau.. I believe earlier on this thread there were links to all these info.

[HMBTUX]

Just take a step back and think about it, are these companies really going to risk a public fight with a consumer or group of consumers who just want to make their own choice? There’s always the risk of a dispute reaching the media and these scammers would have no support from the public or the “system” when it comes to stripping consumers of the ability to choose. These guys obviously get major kickbacks from the builder, and the builder can save having to purchase the tanks. Win-win for the builder, lose-lose for the consumer - I’m sorry, but I have yet to see a good argument for renting an appliance long term versus purchasing it outright, so yes it’s lose lose. You don’t rent a dishwasher, a washing machine, a furnace, and you know what people outside of Ontario don’t rent hot water tanks either, it’s a no brainer.

Step 1 – buy a new tank
Step 2 – have installer put old tank in driveway or garage
Step 3 – call their bluff, and tell them the tank is waiting for them

Many have done this, including myself. They picked it up the same day and I never heard another word from them. And I slept reallllyyyyyyyyyyyyyyyyyy well that night.

People need to stop with the blind obedience, just stand up to these guys and you’ll be fine. If I had the time I’d submit to the Competition Bureau myself, the watch dogs definitely have an interest in this whole thing and I would imagine the “industry” knows this by now.