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Question
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Ken
    In California, an installing company in my area does a lot of work in the new home construction area and always changes the factory codes and does a lock-out code so we cannot program the system and charges the customer to come out and "unlock"  the panel.   Is this legal for them to do?
Anon
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Answer
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    The answer depends on one of two criteria:
    1.  Is there a statute or regulation in the jurisdiction that addresses the issue directly?
    2.  What does the contract between the alarm compay and the subscriber state?
    If there is a statute then you have to comply with it.  Most jurisdictions do not have any law that addresses locking out the panel.  But some do and you need to know how your jurisdiction deals with it.  There could be a statewide law or consumer regulation that addresses the issue.  I don't know if CA or any of its cities or municipalities have any statute or regulation.  Anyone know about any jurisdiction who has anything on the books?
    Most of you will not have a law to worry about so it's your contract that will or should address the lock out issue.  The Standard Form Contracts all provide that software and passwords and codes remain the property of the alarm company.  The password or code will be provided or the panel defaulted, only once the subscriber has completed full performance of the contract.  So if there is a monitoring or service contract with a term of years the password is given only once the contract is performed.  
    If your contract is silent on the issue then I think the subscriber should get the password and code.  Likewise, if the transaction is an outright sale with no continuing services to be provided by the alarm company then the password and codes should be provided to the subscriber.  But by contract even then you could withhold the codes.
    Lockout is obviously done to preserve the subscriber by causing substantial expense if the subscriber wants to change alarm companies.  Alarm companies that do take overs, ocassionally or as a business model, don't like lockouts.  Neither do subscribers.  Most subscribers won't ask for the codes and will never need them. especially if you give good service.

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