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 whitelist ken@kirschenbaumesq.com ****************************** what about existing contract when you know of new owner occupant February 12, 2026 ********************************** what about existing contract when you know of new owner occupant ********************************** Ken We received an email that a commercial customer has changed ownership. We service fire, security and access control. I have sent the new owner new contracts last week for signature. They have forwarded them to their attorney for review. The previous customer is current until February 1st. Do I email them notification for cancellation? Thank you, Bryan ********************************* Response ********************************* There are two potential problems you need to consider. First, I am going to take a wild guess that you are continuing to provide service to the new owner even though you don't have a written contract signed. You can also use the Assignment and Assumption agreement so new owner can take over the existing contracts. If there is a loss now you won't have contract protection. Ultimately the new owner may not sign your contracts and then you will have provided services for no compensation. Because you don't have a new contract or assignment in place you need to be careful about how you deal with the subscriber you do have under contract. You probably don't want to just terminate service and relieve the subscriber of the contract payment responsibilities; you want to get paid for the contract term. The existing subscriber remains liable on the contracts. If you sign the new owner up it certainly will reduce a recovery against the old owner, though it makes sense to sign up the new owner as long as you get the right deal. You should let the existing subscriber know that the subscirber remains liable on the contracts. You don't indicate what term is left on the contracts; if at end of term then they will be treated as canceled when the term expires; trying to hold the subscriber to auto-renewal will not likely work once you know the subscriber no longer occupies the premises or intends to continue your services. ************************************ STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** 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
