The Law On Door To Door Furnace Sales
Furnace Caveat Scam
The end of the story is that many people need help discharging furnace caveats from their titles. How it starts is that many people get talked into buying furnaces and other “energy saving” products from door to door sales people. Usually they pay $1000s more than what the normal retail price is. We leave it to you to decide it this is shrewd business or a scam. That said, door to door sales of furnaces (and related energy products) were banned in Alberta on January 1, 2017. The Alberta government did this through the Consumer Protection Act. This means that sales representatives can’t show up at your home uninvited to sell you a furnace, HEPA filter, air conditioner, water purification system or other piece of related equipment. For example, the following are specifically targeted by the Act:
- furnaces
- natural gas and electricity energy contracts
- water heaters
- windows
- air conditioners
- energy audits
Door to door sales of ‘energy efficient equipment are now illegal in Alberta because the agreements are substantially unfair to consumers. This is because the sales representatives target seniors, attend at their homes uninvited and don’t disclose fundamental terms of the contract. This is not to say that these sales do not still occur. It also means that there are many people who require help discharging furnace caveats from their title. The litigation lawyers at Kahane Law Office regularly help people in this situation.
How The Door To Door Sales Pitch Works
The sales representatives tell the seniors that their furnace require inspecting by a “qualified” person. Once granted access to the home, the sales
representatives talk fast and promises huge savings. They perform an ‘inspection of the furnace and then tell the consumer that it needs replacing in order to be energy efficient and in compliance with the government’s energy policies. The door to door sales person often also add in a warning of “safety concerns”. They also promise savings on utility bills and promise government energy rebates.Often times if a consumer signs a contract, a different sales representative attends at the home a few days later and sell additional ‘energy efficient equipment to them (such as a hepa filter, water purification system or air conditioner). All of this is done on the pretense that the sales representative is an expert in energy efficiency and is affiliated with the Alberta Government.
What The Contracts Really Bind People To
The harsh reality is that most of the time when people need help discharging furnace caveats from title, they have not actually bought anything at all. Basically none of the sales pitch is true. The reality of these furnace sales contracts are:
- The contract actually rents the equipment for a period of 10 years;
- A Notice of Security Interest (a lien) will be registered against title to the consumer’s home (this is the part that leads to discharging furnace caveats) ;
- The consumer will pay 6 to 20 times more to rent equipment than if they were to purchase and install the same product from a local company;
- There are no savings on utility bills;
- There are no government rebates;
- The company is not affiliated with the Government of Alberta or the Government of Canada;
- The equipment installed is not any more energy efficient than the consumer’s existing equipment;
- If or when the consumer cancels the payments under the agreement, the company will refer the account to a credit collection agency; and lastly
- If the consumer stops making the payments often times the company will retain a lawyer to send collection demand letters for the payment of the account in full.
Discharging Furnace Caveats Costs Less Than Paying The Scammers
Due to our success in negotiating and our history taking matters to trial, Kahane Law Often offers costs effective ways to achieve removing furnace caveats from title. Different furnace companies respond differently, however our success in the past includes a variety of these companies. The company knows that if you sold your home, the caveat needs to be paid out. This is why it is best to act quickly and have the caveat removed before you make more monthly payments.
How Lawyers Help With Discharging Furnace Caveats
Our lawyers apply a two prong approach to discharging furnace caveats. In addition to legislation banning the practice of door to door sales of this kind, the agreements also violate the common law as applied by judges over the years. This means that its very likely an Alberta court would find these agreements to be void under the principles of contract law, specifically:
- Negligent misrepresentation;
- Fraudulent misrepresentation;
- Non-disclosure;
- Unconscionability; and lastly
- Undue influence.
Notwithstanding the illegality of these agreements, there are reports that door to door sales of these products are still occurring. If you experience or have experienced any of the above conduct, contact our office. We’re here to help. We can explain your options to you. The options are varied depending on your situation, but there is always a solution.
What Our Lawyers Do To Help You Discharge The Caveat
Our office can assist if you need to transfer your property but have a lien registered on title. We can also assist if you are in a dispute with one of these companies for payments under one of these agreements. Most importantly, we can assist in obtaining a court order that declares the agreement null and void, discharges the lien on title to your home and allows you to keep the equipment moving forward.
Getting Legal Help Discharging Furnace Caveats
Get help before making more monthly payments. To set up a consultation with one of our litigation lawyers to discuss your situation, email or call today. Often we help family members whom are trying to assist a parent or sibling. You can connect with us at 403-225-8810 or feel free to also reach us toll-free at 1-877-225-8817. Often, we connect quicker via email (we avoid phone tag) so feel free to email us directly here.