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 ****************************** Which contract to use for house owned by corporation May 23, 2026 *********************** Which contract to use for house owned by corporation *********************** Ken, We are going to be doing an installation for a burglar alarm system, cameras and smoke and heat detectors at a house that is owned by a property investment company that is a corporation. Should we use a commercial all in one or a residential all in one? The occupant of the house will be an employee of the corporation. The camera system will be monitored by out central station along with the alarm systems. Should we use a commercial all in one or a residential all in one? The employee won't be signing the agreement, only the Property Manager. Thanks. name withheld ************************* Response ************************* The choice of contract in this scenario is simple, it's the Residential All in One. The reason is that the Commercial All in One does not provide for any fire detection, whereas the Residential All in One does cover fire devices, in most cases smoke and CO detectors. But the more complicated question is whether you need to comply with all the consumer law requirements when entering into a consumer contract, which the Residential All in One is. By using the Residential All in One in your state specific contract you have a contract that complies with state and federal consumer requirements. But those requirements include the 3 day notice of cancellation and the use of the Cancellation Notice itself, and the real issue here is whether that applies or can you strike it from the form. The prudent answer is leave the notice in and provide the cancellation form; then wait 3 days before starting the job. The bottom line reason is that if this account is included in the sale of accounts you will be representing that it was properly executed and is enforceable. You will also be representing that all residential contracts complied with the 3 day notice, if that was your practice [and hopefully it is]. If the notice is required and you don't comply the 3 days never started and the contract is voidable at any time. The question of enforcement of the contract could arise in a lawsuit, either commenced by you or your subscriber, and that's a bad time to find out the contract isn't enforceable. So basically the only downside to complying with the notice is the subscriber may cancel within the 3 days, an unlikely event. Another important issue is how the contract is prepared naming the subscriber. While we know the subscriber wants the corporation to be the subscriber and pay for the services, we also know that it's to be used as a residence and occupied by a corporate employee. We need to find a way to be sure that the occupant is bound by the contract terms because it's the occupant who is likely to be the one to sue you, especially on an intrusion alarm. The occupant could also sue on a fire alarm and so would the owner of the property; you prefer they both be clearly bound by the contract. With that in mind you can consider that the corporation has agreed to indemnify you if a third party, or itself, sues you. That is probably sufficient to protect you from the occupant and it would be a reasonable risk to assume if the corporation tells you the employee will not be signing the contract, period. Another way to handle the situation is by naming the subscriber as "The corporation on behalf of itself and as agent for John Doe". The signature line would have two spaces, one for the corporation and another for John Doe, though the corporation would be signing on behalf of both signatories. It may sound like an overly complicated and convoluted answer, but you did ask. ********************** 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
