KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ******************************* Sale or lease October 25, 2019 ************************ Sale or lease *********************** Some think that All in One means sale or lease, and who knows what else. That’s not the case. The Standard Form Agreements do not confuse or combine a sale and lease transaction. Either you’re selling the equipment or you’re leasing it. If you sell the equipment it belongs to the subscriber. If you lease the equipment it belongs to you. The All in One Lease does have a provision for selling the leased equipment to the subscriber, but that is only an option to be exercised by the alarm company after the subscriber defaults on the contract. “Lease to purchase”, whether for $1 buy-out or more, turns your contract into a retail installment contract subjecting it to consumer legal issues. The Standard Form Agreements are not drafted as retail installment contracts and don’t comply with the applicable laws for those contracts. Avoid a contract that is lease to own. Similar confusion is caused by the clause providing that title to the equipment remains with you until it’s paid for. That is simply not enforceable. Once the equipment is installed it belongs to the subscriber and all you could have retained was a security interest in that equipment. Since you have to “perfect” a security interest, and you’re not likely to do that for a number of reasons, title will pass to the subscriber once the equipment is installed. What you may be able to guard against is title passing to the subscriber when the equipment is delivered to the job-site, before it’s installed. You can include a provision in your contract that title does not pass unless the equipment is installed. Leasing is popular because you always own the equipment and have better control over the site. If you charge enough for the installation you can come close to the sale price on a Sale deal. RMR tends to be higher for leased systems. ******************* To order up to date Standard Form Alarm / Security / Fire and related forms, click here:www.alarmcontracts.com ************************* CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a post, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here. ************************************************ Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
