KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on do you need to find out if subscriber is contracted with another alarm co / who owns the wiring
October 28, 2019
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Comment on do you need to find out if subscriber is contracted with another alarm co from article on October 24, 2019 / who owns the wiring
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Ken,
            Your explanation for ‘taking over’ another alarm system that may already be contracted to another company was clear.   I want to question whether the wiring installed with a security system (or I suppose fire alarm in some situations) is considered the same as the equipment.  I have heard it both ways.  When the Federal government made ADT divest (as a monopoly) in 1970 or so, the wiring was considered differently. As if it was part of the building structure. I have heard and seen it both ways since then. 
            Zeke
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Response
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            Who owns the wiring?  Good question.  Another question would be, who owns the existing alarm system?  Why can’t you just reprogram the panel and take over the system, and of course the RMR?  
            The October 25, 2019 article, titled Sale or Lease, did address this issue; it deserves repeating and further elaboration.  
  If your transaction is a sale then the subscriber owns the equipment once installed.  That will include all material and equipment connected to the system; it includes the wiring.
            If your transaction is a lease then the subscriber owns none of the equipment and your contract should specify what equipment and material is included in the lease.  If the Lease doesn’t make it clear then a subscriber could, and will, claim that the wiring has become part of the realty and belongs to the subscriber.  However, the Lease can make it clear that the wiring remains property of the alarm company and can be removed when the contract is over.  
            Here’s why wiring causes confusion.  When a true fixture gets installed it’s considered part of the realty.  You can say that piping from the boiler to the bathroom fixtures is removable, but it’s not; not any more than the main support beam in the house or structure.  But when the item to be installed falls into a gray area the agreement between the parties will be great deference if there is a dispute regarding the character of the item.  A TV hung on the wall is removable.  A TV built into a built in cabinet is more likely permanent and part of the realty.  Alarm equipment and wiring can be removed without causing damage to the structure.  
            If you want to retain ownership of equipment, including the wiring, use the Standard Form Lease All in One.  That lease comes for residential use and commercial use.  Even the Commercial Fire Alarm Agreement comes in the Lease format.  Get the forms at www.alarmcontracts.com.  Don’t forget to order the Disclaimer Notice too.
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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