KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Old subscriber and old systems to be re-activated

June 6, 2020
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WEBINAR: 
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Title:  Guarantee and hold back issues / valuation in era of coronavirus
When:  June 9, 2020 12 PM EST.
Presented by:  Ken Kirschenbaum,Esq.  Guest panelists:  Mitch Reitman
Who should attend:  Alarm owners
Register:
 https://attendee.gotowebinar.com/register/4133674845025391119

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Title:  Understanding the buy-sell process
When:  June 16, 2020  12 PM ET
Description:    Webinar will explain the process.  How to prepare for sale (contracts, proper entity, etc), understand RMR, attrition, the NDA process, negotiating the deal, responding to the LOI, due diligence, etc
Presented by:  Mitch Reitman and Dennis Stern,Esq
Hosted by:  Ken Kirschenbaum,Esq
Who should attend:  owners
Register:  https://attendee.gotowebinar.com/register/1607118070759099150
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Old subscriber and old systems to be re-activated
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Ken,
            I have a client I had installed a Residential Burglar and Fire Alarm for approximately 10 years ago. After the initial contract term they decided to cancel monitoring as it was no longer a primary residence for them. With the current state of affairs in the world they are now asking for me to setup monitoring again as they are renting to a tenant on a month by month basis (not sign a multi year contract). 
            Based on the age of the system, permit fees, test and inspection of the system along with new backup batteries and smoke detectors and carbon monoxide detectors would all be required. 
            The client is asking to only monitor for the burglar alarm side of the system. The only Life Safety detection of Fire and Carbon Monoxide is through the alarm panel (No line voltage alarms, smoke or CO within the residence) 
            This scenario is not something I have come across before and am uncertain if I can do that with the current residential All in One Agreement and Disclaimer Notice I just purchased from you or if it is even advisable to do. 
            Although I do not like to turn down business, my feeling is that there may be too much liability here and that I should walk away from getting involved with this one. 
            Do you have any thoughts on the above mentioned matter? 
Thank you
Name withheld
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Response
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            You are permitted to give the subscriber what is asked for; it’s not your responsibility to insist on other or more protection, merely to point out system and coverage deficiencies and that more and better equipment and services are available.  The subscriber sets the scope of the job with the budget the subscriber is willing to allocate.
            You have an old system for intrusion and fire [probably smoke and maybe heat and CO].  The subscriber wants you to monitor for intrusion only.  Assuming you can re-program the panel to eliminate all devices except intrusion, you can do the job.  The Residential All in One and the Disclaimer Notice will work perfectly for this subscriber.
            The Residential All in One, Schedule of Equipment and Services, will detail exactly what you are doing.  You don’t indicate if the subscriber wants you to inspect and repair the existing system, or just activate monitoring.  I suppose at the very least the subscriber wants you to confirm that the panel is communicating with the central station.   
            The Disclaimer Notice has several uses but one in particular is applicable here, noting the deficiencies in the existing system.  You will treat this system as an existing system to be taken over, because that’s essentially what it is.  As you know the Disclaimer Notice will specify that the subscriber did not permit inspection or repair, just monitoring hook up.  
            One other issue deserves comment.  Since this subscriber insists on a month to month agreement, unless you are getting paid to restore the system I can’t image this subscriber is worth dealing with.  Next this subscriber will want to re-write the terms of your contract
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com