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Wednesday, January 30

Buyers out $10,000 after house deal falls apart


MARK WEISLEDER, real estate lawyer
If a house deal falls apart because the buyer can’t close and the seller then sells the property to someone else for more, who gets the deposit?
Here’s what can happen:
In early September 2003, Shankar Iyer and Bala Ramachandran agreed to pay $289,000 for a new home from Pleasant Developments Inc. They accompanied their offer with a $10,000 deposit and the builder accepted it on September 16. The buyers got cold feet and the next day changed their mind, asking for the return of the deposit.
The builder refused to return it and resold the house for $700 less than the original deal, but kept the deposit. The couple sued in Small Claims Court for the return of the deposit. When it came to the hearing, the question for the court was whether the builder could keep it all. The judge decided the builder could only keep $700 — the amount by which the sale was reduced — and was ordered to give the balance of $9,300 to the buyer.
The builder appealed. Three years later, Judge Brown of the Ontario Superior Court of Justice decidedthe builder could keep the entire deposit, even though he did not suffer any loss.
He quoted the law on the subject as follows:
“Even in the case where the seller re-sells at a purchase price that is high enough to compensate for any loss from the first sale, the seller may nevertheless retain the deposit.”
What this means is that, where it is the buyer’s fault that a deal does not close, the seller can keep the deposit. There is an exception to this rule if the amount of the deposit is out of all proportion to the losses suffered. In those cases, the loss of the deposit may be considered a penalty and then it will not be paid to the seller and will be returned to the buyer.
The buyers tried to argue that the loss of the $10,000 was out of all proportion to the losses suffered by the seller. The judge noted that the deposit paid was only 3.6 per cent of the purchase price.
In my opinion, the deposit would have to be greater than 10 per cent of the purchase price in order for the buyer to recover it if the seller suffered little or no damages.
Here are the lessons:
1.Understand your rights are before you sign a real estate contract and make a deposit.
2.If you are a buyer, understand that once an agreement is signed and accepted, you cannot simply change your mind, even one day later.
3.If a buyer defaults on their obligations, then not only can the seller sue for any damages, they can in most cases sue for the deposit, even if they have suffered no damages at all.
4.If a matter goes to court, any deposit will remain in the real estate brokerage trust account until the parties sign a mutual release or the matter is decided by a court, which in this case, took more than 2 years.

Tuesday, January 29

Keeping Wine for the Long Haul

Epicurious

You don’t need a fancy space to cellar wine. Just some patience.
426152_10150572848222258_1074352355_nTo enjoy aged wine, is it necessary to construct an elaborate wine cellar, carved into the depths of your home? Absolutely not. The most important part of creating a space to store your wine is finding a place where they will not be attacked by wine’s major enemies: lightheat, and humidity.

There’s a reason why most cellar-worthy wines come in a dark brown or green bottle. Just as your skin doesn’t appreciate too many UV rays, neither does your wine. Heat will cook wine, ruining it fairly quickly. Wild fluctuations in humidity can damage the cork, allowing too much oxygen to invade the bottle. So to start aging wines, find the coolest, darkest spot in your home. As long as there are no radical fluctuations in heat or humidity, you should be ok.

So why go through all this gratification-delaying effort? As wines age, primary, fruity flavors start to mingle with the unexpected delight of savory secondary notes. Wine is a living thing, constantly evolving and changing. And not just red wine; if you’re looking for value for the cellar,German Riesling can offer astonishing levels of pleasure and complexity.

Just don’t wait too long to enjoy them. Many wines are made to be enjoyed as soon as the are bottled. Particularly white wines, lighter reds, sparkling wines, and most wines under $30. The wines that really benefit from age tend to be the big reds from Bordeaux and BurgundySpain,Italy and California. You can keep tabs on the “drinkability” of your wines through websites such as cellartracker.com, which tells you whether to drink or hold specific bottles.


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BURLINGTON - optimizing shrinking land inventory


mayor says Burlington must shift focus to keep up revenues


BURLINGTON A 20-year push to double Burlington’s industrial-commercial tax base is starting as the city’s era of rapid residential growth ends.

Mayor Rick Goldring told the Burlington Chamber of Commerce Thursday the city wants to attract more than 1,500 new jobs a year or 29,000 by 2031.

“Burlington’s era of significant growth and new construction is over, Goldring said. “We are out of land for large new residential subdivisions, and our supply of industrial commercial land is also constrained. We are not on automatic pilot growth anymore. ”

In his speech, Goldring outlined the broad strokes of a new development strategy for the city that ends its reliance on residential assessment growth and outlined the need for provincial help with transit and tax policy.

A key part of the city’s drive, he said, will be redeveloping some commercial-industrial land to make more intense use of the space.

“While the city’s employment lands are valuable strategic assets, they are in limited supply,” he said. “We must take a proactive and targeted approach to preserve and optimize the city’s employment land inventory … making us less reliant on residential property taxes.”

Provincial policies have essentially stopped the outward growth of municipalities. That means old ideas about larger homes and sprawling office developments have to make room for more houses on smaller lots, more condo towers and townhouse projects and more intense use of employment land.

“The theme of our official plan review is growing in place,” he said. “We’re going to retain our urban/rural boundary at Dundas-407 and we’re going to retain 50 per cent rural and 50 per cent urban.

“We all see the benefit of maintaining the 50 per cent rural, but to deal with that we have to look at intensification on the residential side, and then there’s the whole economic development piece as well,” he said.

Without land for new subdivisions of executive homes that come with large property tax bills, Goldring said new assessment in Burlington has fallen from an average growth of 3 per cent over the past decade to less than 1 per cent last year. That means if city services are going to be maintained the only choices are higher taxes for existing residents or new business development that pays higher taxes but consumes fewer services.

Goldring said Burlington’s specific plans call for developing the area of North Service Road between Guelph Line and Appleby Line as “Burlington’s Prosperity Corridor.” The vision is to launch a cycle of reinvestment that will fill the area with over 2 million square feet of new industrial-office space supporting more than 6,000 new jobs.

Across the city the goal is to build more than 900,000 square feet of new industrial/commercial facilities every year. That’s estimated to generate over $600,000 in new tax revenue and create 1,526 jobs a year for a total of 29,000 new jobs across the city by 2031.

Building those offices and plants is only part of the city’s prosperity equation — major transportation changes are needed to ensure people can get to those new jobs. That, to Goldring, means the federal government has to step up and start funding transit projects.

Canada, he said, is one of the few developed countries in the world where the national government doesn’t contribute to public transit, and that’s part of the reason workers in the Greater Toronto Area face some of the longest commute times in North America.

“There is no time to wait on this as the cost of congestion is significant for both commuters and consumers,” he said.

So far, the Ontario government has committed to widening existing highways, but that’s only a partial solution — what’s really needed is for Ontario to “aggressively” support the $50 billion Big Move infrastructure plan by Metrolinx, a plan supporters say could cut up to 32 minutes off average commuting times in the GTA. So far the province has only committed $16 billion.

The Big Move calls for the addition of more than 1,200 kilometres of rapid transit projects in the GTA. That would more than triple current capacity and mean over 80 per cent of residents in the region will live within two kilometres of rapid transit.

Goldring also called for changes to a tax system he said is unfair to municipalities.

“There is real unfairness about a tax system that sees municipalities receiving 11 per cent of tax revenue generated along with maintaining 65 per cent of the capital infrastructure,” he said. “Mississauga Mayor Hazel McCallion has said many times that the federal government has all the money, the province has all the power and the municipalities have all the problems.”

 The Hamilton Spectator, January 25, 2013

www.teambluesky.ca

Wednesday, January 23

10 Points to Ponder...SHOULD YOU STAY OR SHOULD YOU GO FOR A REMODEL?

by Anne Higuera

For remodels big and small, homeowners all have to answer the same question: Should you find an untouched space in your home and live through the construction, or pack your bags and go? The answer depends on the size of your remodel and these nine other things you might never have considered.
1. Money. The most obvious consideration is actually more complicated than you might think. Yes, it will cost money for a rental, but it can also cost money if you stay and you’re in the way. Some contractors charge more for projects where clients stay on, knowing there will be additional costs in cleanup, a rush to get mechanical work done so that plumbing and electrical services aren’t interrupted, and things as simple as lengthy daily conversations onsite with homeowners.

This is a calculation best done in concert with your contractor and with a heavy dose of reality. If you’ve never visited a house undergoing a remodel, now is the time to do just that so you can get a clear idea of how much of your home will be affected by what you have planned.
2. Purpose. The type of project can immediately answer the stay-or-go question. If your roof is coming off for a second story or your house is being raised up, you will likely want to move out. These kinds of renovations make it impossible to heat or cool a home effectively and generally involve cutting off plumbing service, electricity, heating and air conditioning. If you know that a very large blue tarp will be part of the plan, consider that your invitation to an alternate dwelling.
3. Scope. Work that includes more than half of your home or that affects all of your bathrooms and kitchen will pretty much rule out staying in the home as well. Most families can get by without a kitchen, but having no bathroom means nowhere to clean dishes or yourselves. And a single room to sleep in does not a home make.
4. Pets. The key with pets is keeping them away from the part of your home that’s under construction. Temporary doors and ZipWalls can help, but sometimes the incessant noise and activity can be disturbing to cats and dogs even if they are physically separated from the work area. Contractors are just as worried about your pets as you are, but you should know their limits. Some contractors actually ask for special contract clauses stating that they will not be responsible for the pets in the event that they escape.

5. Kids. Children are often fascinated by the work going on. But if you spend a lot of time engaging carpenters in talk with your kids, costs will add up quickly. Also, workers at your home cannot be asked to stop making noise at nap time (remember, you are paying them hourly), so if you have a young child, you need to find an alternate place to nap or bite the bullet and get a rental.
6. Cooking. A temporary kitchen can be just the thing to get you through a kitchen remodel. A hot plate, microwave and toaster oven are great for makeshift food production. Preparing and freezing meals ahead is very effective, provided that the remodel scope allows you to keep a freezer on. But making four to six months' worth of meals can be daunting. Homeowner Jennifer Bartlett made and froze food for two months before the remodel so she wouldn't have to eat out every night. This required purchasing a new freezer, but it was a solution she was happy with during her kitchen remodel and home office addition.
7. Cleaning. Do not underestimate how this may wear on you over time. Washing your dishes in the bathtub might get old after a few weeks. And even with thorough site protection, expect dust to collect around your home. It’s worthwhile to ask your contractor to run an air handler to filter out the dust for the duration of the project.

8. Sheetrock. It’s possible to strike a happy medium by staying away from demolition until the Sheetrock phase and then moving back in. By waiting until the Sheetrock is complete, you avoid the messiest, dustiest and noisiest portions of the project. This usually happens two-thirds of the way through a project, and that translates to a possible one-third savings on a rental. But your place will still not be move-in ready.
9. Having to go even if you stay. Some remodeling work requires zero occupancy even if you are able to stay for most of the project. Finishing hardwood floors generally means staying away for at least a day on at least two separate occasions while the fumes dissipate, for example. So even if you camp out at home during most of the construction, know that you may need to leave during certains times anyway.
10. Peace of mind. If you stay, you can be assured that you will be intimately aware of the state of your home. Going away has its benefits too. Homeowner Peter Langmaid’s whole-house remodel was completed earlier this year, and he stands by his decision to leave. “My advice for major remodels: Budget for a rental — it's less painful if it doesn't feel like an additional expense — and leave," he says. "The remodel will occupy plenty of your time; no need to wallow in the day-to-day action.”

www.teambluesky.ca

Tuesday, January 22

A Shift in the Canadian Homebuyer Mix & Mindset



Canadian homebuyers more experienced,
 financially prudent moving forward, says RE/MAX


Tighter mortgage lending rules, in conjunction with the fallout of the US housing meltdown and the European debt crisis, have triggered a shift in the Canadian homebuyer mix and mindset.  The new Canadian real estate consumer is experienced, fiscally-responsible, and ready to move forward over the next 24 months.

That’s the takeaway from the RE/MAX Canadian Homebuying Trends Survey conducted among more than 1,100 prospective purchasers late last year.

 National findings include:

  • ·       Almost one in five purchasers is single
  • ·      More than two-thirds are second or multi-time purchasers
  • ·       Four out of 10 purchasers between the ages of 18-34 have a downpayment of 20 per cent or more
  • ·       Just over 80 per cent of buyers believe housing values in their area will rise or remain the same


Changing market conditions have clearly prompted the shift in the homebuying activity from coast to coast.  Once dominated by first-time buyers, the survey found that second and multi-time buyers will lead the charge for housing over the next two years.  Experienced purchasers now represent 70 per cent of homebuyers, while first-time buyers are sitting at 30 per cent.

Spending will be reined in—with 38 per cent of purchasers indicating they’ll spend under $250,000 and 42 per cent indicating they will spend between $250,000 and $500,000. In Ontario, fewer buyers will fall under the $250,000 price point—at 31 per cent—and more buyers will be active between $250,000 and $500,000—45 per cent.

Greater fiscal responsibility is evident across the board.   In fact, 40 per cent of younger purchasers, aged 18 to 34, are expected to put down 20 per cent or more.  Serious equity gains have been a contributing factor.

Consumer demographics continue to evolve, shaped by new realities. Single buyers have emerged as a force in the market, representing almost one in five purchasers.  Forty-Five per cent are female—a stat that truly demonstrates how far we’ve come, as the number of successful, young female professionals entering Canadian housing markets climbs. 

Confidence underpins the Canadian housing market, with 83 per cent of purchasers believing that housing values in their area will rise or stay the same over the next 12 months.  Homebuyers were most bullish in Ontario, where that figure rose to 85 per cent.  Optimism in the province continues to be propped up by sound real estate market fundamentals and an improving economic outlook.

While the homebuying mix may be different, the mantra is the same.   Homeownership remains a key component of the Canadian Dream.  It’s a common thread among all Canadians—a goal to which we aspire—and that’s not likely to go away anytime soon.  

Monday, January 21

Contractor Tips: 10 Remodel Surprises to Watch Out For


by:  Kenny Grono, Owner of Buckminster Green LLC

There's no crystal ball that can tell you what might go wrong on your home remodeling project, but you don't need to be able to see into the future to be prepared for an unwelcome surprise or two along the way. Adding a contingency fund that's 5 to 20 percent of your budget can go a long way toward averting financial setbacks, as will knowing about some common discoveries that add unexpected costs to a project.
1. Asbestos. Get asbestos properly and professionally remediated. This is not a place for DIY or to look the other way. You will need an abatement contractor to remove the material and give you a report on an air test that proves there are no fibers in the air. If that isn't in the budget, cut the budget somewhere else. It's that important.

2. Structural flaws. 
These often can't be seen until demolition is complete, but you can look for clues: cracks, settling floors, crooked door jambs etc. If you see these, adjust your contingency fund accordingly
3. Unreliable contractors. Check references and do your homework before you give anyone a deposit. If that deposit walks away or you need to walk away from a contractor, you've either got a trip to court ahead of you or a decreased project budget — maybe both. See 10 contractor scam warning signs

4. Neglect on permits.
 Permits do cost money, and they are no guarantee that the work will be well done — that depends on the individual contractor. But if you are caught working without a permit, you can expect that the building inspector will be less inclined to work with you and your plan, any you may have to pay fines. Building codes are not black and white, especially when it comes to remodeling. You want to have a building inspector involved who will be on your side.
5. Water damage. What looks like just a brown spot on the ceiling might turn out to be rotted rafters and a moldy roof and wall sheathing. Suddenly, what you thought was a ceiling repair job turns into an environmental hazard (mold, like asbestos, should be remediated by a contractor trained in this work) that requires new sheathing, a new roof and maybe new siding.

6. Termites.
 Where there is water, especially when it's close to the ground, termites are soon to follow. If you live in an area with termites, the water that infiltrates your walls brings termites into the walls and floor joists. Correcting this problem in a finished space can mean completely remodeling that part of the house. The termite inspection that was done when you bought your house should not be the last. Catching a problem early can mean the difference between hundreds and tens of thousands of dollars.
7. Property disputes. Before you add on to your house, even if you're just adding a fence, make sure you own the property you're building on and that you are adhering to any setback laws or stipulations in the zoning code. If not, this mistake can be costly to undo once it's discovered. Build your brand-new kitchen 6 inches on the wrong side of the property line, and you could have to tear that new kitchen down when your neighbor finds out. These disputes can get ugly. Avoid them by having professionals review the deeds and submit site plans to your local zoning board for review.

8. Bank issues.
 If you plan to finance your project with a loan from the bank, make sure that loan is in place before you start work. It might be tempting to give your contractor a deposit to get started while you wait on the loan paperwork to be processed. But if that loan doesn't go through, you may have just paid for demolition only to find out that's the only part of the project you can afford.
9. An incomplete plan.I've said it before, but it bears repeating: Work with a designer and a contractor to come up with a plan that is thorough, affordable and buildable. If you plan to fill in the blanks once you start work, you may find that some of those blanks end up being a lot more expensive than you expected.

10. A portfolio plan.Sometimes a set of blueprints comes across my desk that is complete down to every last detail, and every one of those details will be expensive. These projects are exciting when the homeowner has set a realistic budget for the work. Ideally, a contractor is consulted early on in the process of developing the plan, advising on ballpark costs and the feasibility of the proposed ideas so that a realistic scope and budget emerge. If this doesn't happen, you can end up with a portfolio plan: a design full of the latest, hippest, most expensive details.


www.teambluesky.ca

Friday, January 18

Want to sell your home in 2013



Here are 5 tips to ready your place for would-be buyers 



Sheryl Ubelacker, Hamilton Spectator


So you’ve decided to take the plunge and make 2013 the year to sell your home.
Maybe you want to move up the property ladder into something roomier, say switching from a condo to a bungalow or from a semi into a fully detached two-storey with plenty of yard.
Or perhaps wandering through bedrooms left unoccupied by grown-up kids has made you admit it’s time to downsize to a smaller, more manageable abode.
Whatever the motivation for sticking up the For Sale sign, some of Canada’s best-known on-air designers and realtors are pitching in with five things you can do to change that sign to Sold.
1. Get ruthless: Go room to room, decluttering and depersonalizing.

“Selling your house is about taking your personality out of it and having people going through it envisioning their own life and personality,” says Candice Olson, host of Candice Tells All on W Network.
That means doing a bit of a purge, agrees designer Jillian Harris, cohost with realtor Todd Talbot of the series Love It or List It Vancouver, debuting Jan. 7 on the same network.
“Even if you don’t plan on throwing things away, you’ve got to get all of the clutter out of your house,” says Harris, who advises packing rarely used household items, overabundant decorative doodads and offseason clothing in containers, then storing them in the garage or at a friend’s or family member’s house.
That includes packing away most, if not all, of those framed family photos bedecking side tables and the fireplace mantel, and taking down that gallery of magnet-held children’s artwork covering the fridge.
Even wall art should be assessed with an eye toward prospective buyers, says Olson.
“Art is very personal, but mirrors aren’t. Mirrors are great for adding depth and dimension and visual space and light. So I think walking in and seeing a console and a beautiful mirror over top, it’s noncommittal art, with all the great things that a mirror does.”
2. Kitchen and bathroom: They’re the heart of the home, so make sure they show to their best advantage.

“It’s not a cliché, it’s truth: kitchens and bathrooms sell homes,” says Hilary Farr, the designer half of the stay-or-sell duo on the original Toronto-based Love It or List It.
Farr says spending mega bucks on an all-out kitchen reno aimed at upping your asking price — and one you don’t get to enjoy for long — can backfire if the space doesn’t align with buyers’ tastes. And it may not result in a higher selling price, she warns.
Instead, Farr suggests painting or refacing kitchen cabinets and perhaps changing up the backsplash, a minimal area that nevertheless can deliver a visual punch.
“So you can give your kitchen a wallop in terms of style ... (with) not too much money, and you don’t have to do any demolition.”
Olson agrees, saying episodes on her show featuring kitchen facelifts are rated No. 1 by viewers.
“We do a lot of facelifts on the show with refacing cabinetry using the existing bones,” she says, but even freshening up cabinetry with paint and updated hardware can give a kitchen a whole new look.
“There are paints for countertops, backsplashes, cabinets. It’s about the right preparation for all those surfaces. These are real budget makeovers, but selling a house is about impressions.”
When deciding whether the bathroom needs a do-over, Olson suggests homeowners ask themselves: “Is the juice worth the squeeze?”
“I don’t want people to go in and completely retile their bathrooms,” she says, again recommending a facelift that won’t break the bank. That could be as simple as repainting walls and trim (neutral colours are usually best when selling) and modernizing light fixtures.
“Lighting is key. It’s easy to wire up a couple of bathroom sconces.”
3. Welcome home: Present a clean, inviting space reminiscent of a hotel suite, one that would-be buyers want to stay in — permanently.

Worn-out hardwood floors should be refinished to a glossy sheen, or if still in good shape, they should be clean and gleaming, says Farr. “They’re the biggest area in your home and they’re the first thing that strike you when you walk in the front door.”
Beds should look as if nobody has slept in them the night before, so a crisply made bed with plumped up pillows and shams are de rigueur, she says.
“Same in your bathrooms: fresh towels, fresh flowers, fresh soaps. Dress it up, make it look like the best hotel room you’ve ever seen, whether in reality or in a magazine.”
In the kitchen, countertops should be antiseptically clean and devoid of clutter, but adorned with an eye-catching vase of flowers and a bowl of fresh oranges, “which also put a beautiful scent into the air.”
Jonathan and Drew Scott, the Property Brothers, recommend hiring a home stager to make your house stand out from other listings in the neighbourhood.
“Staging is such a crucial part of it,” says Drew, a realtor who finds potential properties for clients, which twin Jonathan then renovates for the show. “It’s just as important as any sort of renovation, because if a buyer can’t walk into a space and picture themselves living there, they’re not going to give you top dollar, for one, and they might just turn and walk away.”
“You can stage with a lot of your own furniture,” adds Jonathan. “On our show, we don’t get rid of everybody’s furniture. I can usually reuse about 50 per cent of their furniture. Some of the stuff, we may reupholster it, we may paint it.”
Bringing in a stager doesn’t have to be expensive, and the money spent is usually more than recouped with a higher selling price, says Drew. “A good home stager will work with your budget.”
4. Price it right!

“One of the big things for 2013, if we see (the housing market) levelling off, is people pricing their properties right,” stresses realtor David Visentin, Farr’s partner on Love It or List It.
“And that means investigating what your home is worth and not just throwing it out there at a price that makes you warm and fuzzy. Because things aren’t selling the way they used to.”
Drew Scott agrees, saying homeowners need to put aside their emotions. “This is a business transaction. You have to be realistic and that means having a realtor, an agent that can come in and give you a nonbiased opinion as to the value of your home.”
Todd Talbot, the realtor cohost of Love It or List It Vancouver, says the West Coast city has seen price reductions on listings in the last few months, with homeowners dropping their asking price two or three times — a big change compared to a year ago.
“There wasn’t a sense of competition before, but now you are actually competing for fewer buyers. And if you want to have your place sell, you need to make sure it looks better than the rest ... I think that the success is in the details, especially when it is officially a buyer’s market.”
5. Curb appeal: You only get one chance to make a first impression.

While the emphasis may be on dazzling would-be buyers with your home’s interior, don’t neglect the outside, the experts advise.
“Bump that up,” says Visentin, “because you want to make sure that no buyer that goes by your house doesn’t want to look at it.
“Paint the garage door or railing, put in shrubbery in the spring, make sure the grass is always cut. It’s not expensive but it makes people look twice.”


www.teambluesky.ca

Tuesday, January 15

Don't take a bath on the water heater rental game



ACTION LINE: How not to take a bath on the water heater rental game

We know the water heater guys are slinging mud.
They’re suing each other and filing complaints about their competitors. The “other guy” is doing dirty business, not them.
But all you want as a consumer is hot water.
A few years ago, we were all told the so-called “free marketplace” was the way to go. But we should have known nothing in life is free. What the politicians and economists predicted is one thing. What unfolded is very different.
We deregulated gas suppliers. That led to very aggressive and unethical sales tactics. Firms trying to get you to sign a long-term contract went to any lengths to get your business.
A similar situation prevailed in the cellphone industry, where contracts are difficult to terminate and contain many clauses which are poorly explained.
Today, it’s the water heater rental firms.
Even real estate agents have written me, trying to understand what is happening. New home builders are selling homes with rental water heaters included in the purchase.
If you sell that home, the next purchaser inherits that rental agreement, which they have likely never seen.
If you try to buy your way out of an agreement, you could pay thousands of dollars, only to learn you have nobody to service the unit should something go wrong.
K.P. Tran owns a convenience store in Hannon and lives on the property. He pays $57 a month for his rental water heater and says he was told it would cost him $3,700 plus tax to buy it. He has never seen the rental contract which he allegedly inherited when he purchased the property.
“I’ve been asking to see the contract for more than a year,” Tran says.
A salesperson, who’s worked for several of the major rental firms, told Action Line that home builders benefit from their water heater installations.
“Many of the rental firms have been harassing their own customer base with scare tactics and misleading information to try and hold onto business,” he says. “This business exists because home builders have much to gain.”
According to the salesperson (whose identity we are protecting) new home builders are approached by rental providers, seeking new customers.
“These providers pay several hundred dollars per home for the right to install their equipment. With this cash, the builder pays his heating contractor to run the gas line into the home from the gas meter. The gas company is only responsible for everything up to the meter. By putting in a rental tank the builder doesn’t have to purchase or install the tanks, or pay to have gas lines run into the homes.”
“Builders often opt for rental water heaters in order to provide peace of mind to their homebuyers,” Hamilton-Halton Home Builders’ Association executive officer Mathieu Langelier tells us.
“In case of problems with water heaters, purchasers don’t need to worry about complicated warranty documents from the manufacturers or finding a good plumber who won’t charge them astronomical extras for fast service. With rental water heaters, homebuyers can get fast and reliable service. That is the main reason why builders chose rental water heaters.”
He said rental firms do submit offers to home builders, but the terms of those agreements are private.
Homeowner Gayle Hare recently succumbed to a door-to-door salesperson who had her agree to switch rental firms. Then she read our Dec. 27 column, which detailed how Reliance Home Comfort Limited is suing National Energy Corporation (National Home Services), a subsidiary of Just Energy Group Inc. for allegedly “using unfair practices and misleading representations.” Reliance also filed a complaint against National and MorEnergy Services Inc. with Ottawa’s Competition Bureau, but that agency announced it is filing a $25-million suit against Reliance and Direct Energy Inc.
“This is quite confusing to the consumer who is trying to do the right thing!” she wrote.
Here’s what you can do:
  Be fully aware of the terms and conditions of your existing agreement, when it expires and how much it will cost to terminate it.
  Don’t do business with salespeople who knock on your door uninvited.
  Demand to see the name and photo ID card of every salesperson.
  Research the cost of installing your own water heater and hiring someone to service it.
The Consumer Protection Act gives you 10 days to cancel contracts signed in your home. Cancel in writing.
Talk to your neighbours. Share your knowledge. Be proactive. Get competitive bids long before your existing agreement expires.
If you are an older homeowner and feel overwhelmed, make certain there’s someone you trust that can make decisions for you.
Hamilton Police Services has a Crimes Against Seniors Unit, 905-546-4925.
Continually check the Ontario Ministry of Consumer Services’ Consumer Beware List.
If you have a consumer problem, call 905-526-4665 or email

www.teambluesky.ca