Rental Furnace and Right of Removal

Question:

I bought a house and the Listing stated that the furnace was a rental and would be paid out on closing. Naturally, I did not assume the furnace in the Agreement of Purchase and Sale and informed my lawyer to ensure that the furnace was paid out before closing.

The rental did not show on title. The company who installed the furnace in 2009 states it’s not a rental. I do know that these contracts often are passed along to finance companies. Only proof provided so far is the Seller’s lawyer’s word that it is not a rental. Am I protected?

Answer:

The furnace is a fixture. They don’t own it. They used to own it. They sold it. They just didn’t get paid.

When it was installed they had a right to register a Construction Lien for 45 days. Obviously, that time came and went. So, now their only rights are against the Seller. They have no rights with respect to a new Buyer or the new Mortgagee and they have no rights with respect the furnace itself.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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