News & Views

Can Your Furnace Rental Jeopardize Your House Closing?
January 14, 2020

Can Your Furnace Rental Jeopardize Your House Closing?

Written by David Meirovici

You complete an agreement to sell your home, which includes the buyer’s acceptance to continue your water heater rental contract. Three days before closing, you hear that the Buyer may not be able to close on time because the water heater lease has been secured against title and must be removed or postponed.  Worse yet, your lawyer tells you that despite your up-front disclosure, it’s your problem to deal with.

This situation occurred recently with a seller, and brings to light a common issue involving rental water heaters, furnaces or air conditioning units.

Much like a bank’s security by way of a Mortgage, companies that lease these installations often have the right (Imbedded in their rental contract – and sparsely disclosed to homeowners) to register a Notice of Security Interestdirectly on title to your property, in the amount equal to the payout value of the equipment. Like a Mortgage, this registration then acts as an encumbrance to title which to a Buyer’s realization – often too late in the purchasing process – will prohibit their lender (i.e. a bank), from getting the 1st position mortgage they require. 

The Buyer now comes to you needing assistance, or else the deal may be jeopardy.

Thankfully, if you‘ve entered a lease with a reputable equipment leasing company, chances are strong that your lease agreement allows for what is known as a Postponement.  Postponement rights permit a homeowner to request (from the lessor) that this new buyer’s mortgage be given first priority against the property. In other words, the leasing company agrees to “postpone” any interest that they may have in the property, or their equipment, to rank behind the mortgage. While thereby offering a solution to the problem, it should come as no surprise that even where a leasing company has agreed to do so, there is no obligation to process the request in short order – or before your closing date. For other companies such postponement may simply not be allowed, resulting in the need to negotiate another solution with a Buyer, or in the worst case scenario, a terminated deal.

Either of the above scenarios is not an attractive situation to find yourself in days before the closing of your property.  Whether you are a buyer or a seller, this can be avoided by simple proactive measures:

  1. For Sellers – Ask yourself if you have a rental agreement and determine if such interest has been registered on title. The sooner you start the process for postponement the better, and can avoid a buyer not being ready to close.
  2. For Buyers – If know that the property has rental equipment, ensure that all sides are working towards contacting the leasing company right away and not at the last minute.  In the end, your ability not to close on-time may be used against you.

As always, if you have any questions of a real estate nature, please feel free to contact me directly.

If you have any questions regarding the matter, please do not hesitate to contact David Meirovici directly at [email protected] or at 905 763 3770 x 222. 

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About the Author:

David Meirovici practices primarily in the areas of commercial and residential real estate, acting on behalf of individuals, corporations and financial institutions. In addition, David is a member of our corporate law group, providing support on commercial transactions as well as advising on will and estate matters.

The Law has ruined my life … sort of! – Part 2: Enjoyment of Legal TV Shows and Movie
December 16, 2019

The Law has ruined my life … sort of! – Part 2: Enjoyment of Legal TV Shows and Movie

Written By Raffaele Sparano

Legal TV Shows and Movies are full of LIES!!

In my previous article, I lamented how “the Law” ruined my enjoyment of cartoons.  Unfortunately, the Law did not stop there, as it made me realize the above, to the detriment of my enjoyment of that form of entertainment as well.

I decided early on that I wanted to be a lawyer, partly because of the gentle nudging of my parents (such as my father saying encouraging things like, “Raffi, you ARE gonna to be a lawyer … or else!”), and partly because of a variety Legal TV Shows and Movies I was exposed to growing up – they convinced me that being a lawyer would be one of the most amazing, exciting, fulfilling professions in the world (particularly for someone as naïve as I was and who talked WAY too much for his own good)!

But, as I said at the outset, the Law made me realize that these TV Shows and Movies were full of lies!

Perry Mason led me to believe that I would (on a weekly basis) be in trial, during which I would consistently run circles around the SAME inept lawyer every time, confound them and their suspicious witnesses and get EVERY decision in favour of my client (and somehow, at the same time, solve crimes too) … apparently, that’s not how it works.

A Few Good Men led me to believe that I could act like an unbridled maniac in Court when questioning witnesses, without having to listen to the Judge or worry about any repercussions (even if said Judge throws around words like “you’re in contempt Counsel” - pfft) … apparently, that’s also not a good idea (although, when I DO finally decide that I want to end my career abruptly, I would LOVE to go out in a whole “I want the truth” and “You can’t handle the truth!” tirade).

The Firm led me to believe that I could join a large firm, uncover a massive tax fraud and money laundering conspiracy, then turn in said Firm to the Authorities at the risk of my licence, and more worryingly, the risk of prison and death, to survive it all essentially unscathed … so THAT didn’t happen either.

The Devil’s Advocate led me to believe that I could not only figuratively, but also literally work for the Devil … the jury is still out on that.

Matlock led me to believe that I would be beloved by “old people” … I mean, they don’t mind me, but I can’t say that I am “beloved” by them.

Street Legal led me to believe … well, it led me to believe that I should move to the US to practice law (Ugh! That show was awful! How it lasted for almost a decade is mind boggling to me!).

And current Legal TV Shows are just as bad.

Suits leads me to believe it is entirely reasonable to solve almost EVERY issue that arises in almost EVERY circumstance with an, “AH-HA, I’ve got it!” moment, merely a matter of hours after said issues arise, so that I can make almost EVERY opposing party entirely capitulate to my demands and brilliance … that hasn’t happened … yet.

How to Get Away With Murder leads me to believe … no, no, its just ENTIRLEY unbelievable! How? HOW do they get away with not just one, but MULTIPLE blatant murders?! Why, because they’re ALL brilliant Law Students?!  Please!

Anyways, I digress, and I could go on and on and on, but I won’t.

Once again, the Law has again shaken my faith in, and ruined my enjoyment of, Legal TV Shows and Movies.
Except for night Court and Harvey Birdman – those are 100% real and accurate portrayals of the Law … right? RIGHT?!

If you have any questions regarding the matter, please do not hesitate to contact Raffaele Sparano directly at  or at 905 763 3770 x 241. 

*The material provided in this article is for general information purposes only. It is not intended to provide legal advice or opinions of any kind.

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  About the Author:

Raffaele Sparano’s primary area of practice is in commercial litigation which encompasses numerous areas of law, including employment, debtor/creditor, bankruptcy, contractual and commercial breaches, shareholder and partner disputes, intellectual property, tort and negligence, construction liens, franchise, estates and residential and commercial tenancies.