Home buyers surprised at high fees to exit water heater rental contracts

News Release

Competition Bureau Warns Consumers To Check The Fine Print

April 18, 2016 — OTTAWA, ON — Competition Bureau

Canadians considering signing on the dotted line to purchase a home this spring should be aware that water heater rental contracts may be bundled into the purchase contract — and exit fees can be expensive.

Many Canadians are not aware that home purchase contracts can include a clause whereby the home buyer assumes a contract for a rental water heater. Only after the home purchase has been completed do these consumers realize that the fee to exit the water heater rental contract can be $1,000 or more.

This is an expensive and unwelcome surprise for many new home owners. If you are about to buy a home that includes rental appliances such as a water heater, furnace, or air conditioner, check the terms of the contract before you sign.

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