Hot Water Tanks are Fixtures

Hot water tanks are fixtures. It doesn’t matter if it’s a rental, it’s still a fixture. They go with the house (even if nothing is said). If you want to take the hot water tank, then you refer to it as a fixture which is excluded.

If it’s a rental, and you want the Buyer to take over the rental contract, then it must be added under rental items. If it’s not mentioned, then the Seller must deal with it.

Say nothing at all in the Agreement:

1) it’s a fixture going with the house, free and clear of any liens,

2) the Seller will have to deal with the rental company directly with whatever result can be negotiated with the rental company,

3)  the Seller will have to provide a suitable hot water tank replacement or money to the Buyer,

4) the rental company’s rights are only against the Seller personally unless,

  1. there is a lien registered on title, or
  2. if there is an entitlement to a lien under the Construction Act (60 days to register and 90 days to perfect).

The rules are simple enough. You just need to fill out the Agreement correctly in order to accomplish what you have in mind.

Brian Madigan LL.B., Broker

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