Furnace is a Rental – Just Found Out Before Closing


I am the Buyer’s agent. Three days before closing I just found out the furnace is a rental. What can be done?


The furnace is a fixture in most cases. Fixtures go with the house.

The Furnace company would need to have a mortgage, lien or execution for it to have priority and be enforceable. Most of the time, they don’t.

That would leave them with a Construction Lien (45 days to register and 90 days to commence a lawsuit). If they don’t have that, they just have the right to sue the Seller wherever he may happen to be.

They don’t own the furnace, they don’t have any rights to the furnace, they can’t make the Buyer pay and they can’t take it out.

Brian Madigan LL.B. Broker


Comments 2

  1. When the house is a private sale but the furnace is rented should the seller pay out the price of the furnace? before the sale of the house?
    Or is it possible to sell the house as is?

    1. Post

      In a private sale, the parties can agree to whatever they want.

      The rental contract is probably unfavourable to a Buyer

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