************************
WHY DOES EQUIPMENT REMAIN PERSONAL PROPERTY
************************
Ken,
We recently purchased a new Fire Alarm “All-in-One” agreement and I had a question regarding item #9 (ALARM EQUIPMENT REMAINS PERSONALTY): this reads as if the installed fire alarm equipment remains the “personal property” of our company. This would certainly seem to apply for a lease agreement, but not for a sales agreement.
Am I reading this provision correctly?
Many thanks,
Joe
***********************
RESPONSE
***********************
This is a fairly common question. The Standard Form Agreements [fire or commercial] provide that the equipment remains personal property. You, and a lot of other people, are reading "personal property of alarm company", but it doesn't say that. Just that it remains personal property. Since that provision is part of the sales contract and it's clear that the equipment is being sold to the subscriber and installed in the subscriber's premises, it's clear that it is intended to remain the "personal property of the subscriber".
Why? Because some jurisdictions have prohibitions or restrictions on various "protective provisions" when applied to real property. Real property will include appurtenances and fixtures that have attached to the real property. Alarm systems have been held to be "personalty" and remain as such after installation, and the agreement of the parties may have assisted the Judges in reaching that conclusion. When an item of personalty is in a gray area the parties can agree if it is intended as a fixture which becomes part of the realty or if it remains its character as personalty.
Land is real property. A structure build on the land, with foundation [not on wheels ---- like some of you may be living in] is real property. The roof shingles become real property once installed. I don't think you could agree that the shingles remain personalty. A TV hung on a wall and plugged in to the 110v outlet and the Internet was personal property before installed. If it's only hung and plugged in it remains personal property - it can be removed. But what if it's part of a fancy built-in cabinet designed just for that TV. What if the premises is commercial, a bar or restaurant, and the landlord has in the lease that fixtures become part of the realty and can't be removed. Is the cabinet and installed TV now part of the realty? What if the lease authorizes the installation and says that it is now part of the realty? Well then it's settled; it's part of the realty and not removable by the tenant.
While certain components of a fire or security system are easily characterized as personal property - easily removed from the building, other components may start to look more like part of the real estate. The spool of wire, clearly personalty when coming off your truck, may be considered part of the realty once installed throughout the building. But it's a gray area, so by agreement the parties can agree that the item remain personalty.
That's the reason. Keep it to yourself.
**************************
2017 contract updates are ON SALE NOW - see sale announcement
*****************
The Standard Form Agreements have been updated for 2017. We've added a non-disparagement provision. We added a liquidated damage provision when the installation is delayed by the subscriber or others. We modified the monthly payment provision for services so that you have option to give one lump sum instead of separate charges. Fire Protection contract inspection provision was modified in several ways. Retention of ownership of decals and yard signs was added. Warning on audio and video added. Fire All in One added provision to deal with inconsistent agreements. Other changes have been made and you should check with our Contract Administrator Eileen Wagda at 516 747 6700 ext 312 to see if your form needs updating. We starting adding the updates several months ago so you may be up to date. Keep in mind that our updates are free for 6 months and half price for 12 months. Updates will be prepared and sent out after the new orders are processed. The sale ends January 6, 2017, so please be patient.
******************
notice of contract sale - order at www.alarmcontracts.com [you don't need a lawyer to figure this out - order during the sale and save thousands of dollars - call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 for assistance]
*******************
Contract sale runs through January 6, 2017, ending at 3 PM. The discount will be accepted on all orders received between now and January 6, 2017 by 3 PM*. This will definitely be the best deal of 2017. Here's the deal:
Buy 1 Residential, Commercial or Fire All in One and get $100 off and $25 off Disclaimer Notice
Buy 2 All in One forms and get $100 off first and $200 off second and $50 off Disclaimer Notice and $100 off alarm.com rider. Save up to $450.
Buy 3 or more All in One forms and get same as above and $300 off the third form and $400 off the fourth form. Save up to $1150.00 [Residential, Commercial, Fire, Home Automation]
Commercial Mobile Surveillance Lease $1000. Save $500
The Fire All in One with Security Rider $1250.00. Save $400.00 Add the Commercial Fire All in One and the Commercial All in One and get $200 off each. Save $800.00
Qualifier Agreement $1200.00 Save $300.00
Nationwide DIY with monitoring. $3500.00 Save $1000.00**
Nationwide PERS with or without GPS tracking. $3500.00 Save $1000.00**
* Your order must be placed on line at www.alarmcontracts.com and received by our office no later than January 6, 2017 by 3 PM EST. Orders must contain valid credit card payment. Fill out the order form, add up your charges (we will check the arithmetic) and put in "promo" after your total. Orders arriving after sale ends will be returned or with your approval charged regular published rates. Orders will be processed in order received. Rush orders, delivered by email within 48 hours, add 15%.
** Does not include consultation or modification
**********
What's our Guarantee policy re updates?
Free updates within 6 months of purchase*
Half price within 6 months to 1 year*
* applies to original purchase only
To check if you need or are entitled to an update contact our Contract Administrator Eileen Wagda at 516 747 6700 x 312. Free Update orders are processed after discounted or full price orders.
**************************