Assuming Rental Items in a House Purchase

G+G Rental Items


In Ontario, it is not unusual to find rental items in a home that is being sold. Such items may include the hot water tank or an alarm system. It is also common for the new owner of the home to agree to assume the contracts of these rental items when they purchase the house.

A clause about assuming rental items is usually found in the Agreement of Purchase and Sale. In addition, a new owner usually has to complete a contract or assumption agreement with the rental service that is being provided. It is up to the seller of the home to make sure that these contracts or agreements are requested from the rental agency involved and that they are executed by the buyers before closing.

Once a buyer agrees in writing to assume a rental contract, they become responsible for any payments involved. To avoid surprises, inquire about the services the contract provides prior to signing an assumption agreement. Some new home owners have purchased homes and assumed a hot water tank rental contract only to find that rather than a rental, they have assumed a “rent-to-own” contract that is significantly more expensive. Once a buyer has assumed a contract, they are stuck with it for the term of that contract, so it is important to be aware and ask questions prior to signing any assumption agreements.


Feel free to contact us at any point for assistance or advice pertaining to Real Estate Law. We may be reached at 705-435-4339 / 1-877-85LEGAL (1-877-855-3425) or contact us via email.

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