QUESTION:

Ken,

 

We have a customer that has sold the commercial building they occupy.  

They are now the TENANT.   We had previously entered into a Monitoring Agreement with them as the owner of the building for fire alarm monitoring.   Would we need to rewrite the agreement with the new building owner?   Or is the contract with the TENANT appropriate and protecting?

 

Colette Came

Came Security Alarms

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ANSWER:

 You need a contract with the party you are servicing.  The fire alarm system was installed under contract with the previous owner, now tenant.  The building was sold and now the new owner should sign a new fire alarm contract.  I hope you are using the Monitoring Contract and Service Contract.  You should also be using the Fire Inspection Contract.  www.alarmcontracts.com

 I am making certain assumptions of fact in arriving at my answer.  One is that you are getting paid by the new owner, not the former owner - now tenant.  Think what will happen if there is a fire loss.  The building owner - or its insurance carrier - brings a lawsuit.  You want to defend based upon the protective provisions in your contract.  The new owner promptly lets you know that it never signed a contract with you. 

 It is perfectly acceptable if you permit the new owner to assume the former owner's contract with you, again assuming that you have proper contracts executed.  Bottom line is that you need to have a contract with your subscriber, the one whom you are providing the service.

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