A family in Hespeler was shocked and confused when they tried to buy out the water softener unit they had been renting for $25 a month from a local company.
The two-year-old unit had a $2,550 price tag, as well as a $1,413 plus tax ‘termination of agreement' fee.
“We are very willing to pay their absurd, nonsense fee of $2,550 dollars for the water softener. Our problem is the rental termination fee."
"It says nothing in their agreement about having to pay an early termination fee in our knowledge on that agreement anywhere. We pushed back about that,” said Michael Lever, whose family is planning a move.
They later noticed in "very small print" a notice on the agreement that says the contract will last 120 days upon the start date determined.
Lever mentioned back in 2020 when the salesman for the local heating and cooling company first came, they never mentioned anything about the 120 days after they had told him they were planning on moving in two years.
“I think you need a microscope to read it. Our fault admittedly we didn’t read through the specific fine print on the back because we were sure we could end the contract at any time.”
The new buyers for their home don’t want to take over the agreement so they thought they could call to cancel, without any hidden fees.
To their dismay the company handed Lever a $4,478 bill.
“It doesn’t indicate anywhere that there is an early termination charge so that was something that was entirely sprung on us,” Lever said.
When they reached out to ask the company about the ‘termination of rental agreement’ fee they were sent a "confusing" email in return.
The company told them the $1,413 plus tax for the rented water softener wouldn’t be removed due to a warranty on the water softener.
By terminating the agreement early, they were told the extended warranty no longer applies and given a confusing number about dispatch fees.
Unfortunately this isn’t the first time Shaw Hasyj, a realtor in the region, has seen companies charge hidden fees for families like Levers.
"Quite frankly most of the time these are sellers who don’t have the means to go ahead and purchase a new one, so they're going for the next best bet which is their going with the salesman on this, in that they think it will be easily transferred to the new owners when they decide to move,” said Hasyj, who has helped families negotiate these types of contracts upon buying or selling their homes.
“That contract is always negotiable, it’s just a piece of paper.”
Hasyj mentioned that in a situation like the Levers' he has seen ‘termination of agreement fees before, and that it's unfortunately not uncommon.
“They’ll never put their prices online, that’s the crazy part. I get it, they're running a business, however, you can negotiate that number down. Just become really stubborn with them and tell them no.”
A lien on a homeowner’s property can also be registered, which may appear frightening to families when they first see it, mentioned Hasyj.
“The best thing they can do if they have a realtor or someone they know who understands contracts is just send it in to them right there.”
Negotiating the contract down is always the best option before signing, said Hasyj.
Moving in a couple months, the Lever family is hoping to fight back against the extra termination fee but most likely will have to pay it out.
“It’s not written in their agreement and now we're stuck in a position where we have to pay over $4,000 to buy out or we have to transport it to our new house. We're moving to Vancouver.”
The Better Business Bureau has 7 complaints on their website regarding the heating and cooling company Lever used.
"I paid $4,068 for the new unit. I am requesting that I receive a full refund of the price of the new furnace as my warranty was denied to me," read a complaint from October 2020.
The same company received numerous complaints last year as well. A few detailing how the company would come to people's homes without an appointment.
"An employee... came to my home on May 17, uninvited, saying he was to do a furnace & a/c inspection. I did let him do the work thinking I had written the wrong date down but later figured out that he was actually trespassing on my property."
"I had not made an appointment with this company," read the complaint from June of last year.
"Company tech entered premises to inspect rental water heater. Upon completion, informed me that everything was fine with the unit but my furnace venting was found to be unsafe and therefore disabled by the tech."
"I own the furnace and have it maintained by a private HVAC tech. No consent was given for this inspection which included the removal of the furnace cover panel. The tech disabled the furnace, presented a violation form, a quote for over $1800 to make the repairs, and booked a sales rep from the same company to contact me later that day," read another complaint from this past September.
The BBB has some ways to help families when signing contracts for home improvement.
Reading the fine print before signing as well as checking the company for references can help prevent homeowners from being shocked by hidden fees.
