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 ****************************** Business Sold, Alarm Monitoring Contract Left Behind October 17, 2026 *************************** Private meetings at ISC EAST *************************** To arrange a private meeting with K&K and staff at ISC East on November 4 or 5 please contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com or Stacy Spector,Esq at 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com. We are planning half hour appointments between 10:30 and 3:30 on November 4 and 5. If you think you need more time let us know. We look forward to seeing you at ISC; meetings will be outside the hall at the food court area. ************************* Business Sold, Alarm Monitoring Contract Left Behind ************************* Ken I think I know the answer to this. I just wanted to make sure I do things correctly. I was previously informed from a customer that they were in the process of selling a restaurant business. I requested that they keep me in the loop of the sale and also have the new owner reach out so that we could get a new customer agreement in place. Yesterday I reached out to the customer to inquire about several false alarms over the past week. He informed me the sale was completed in August and gave me the new owner’s number. I reached out to the new owner yesterday and did not receive a call back. The last payment for monitoring service was for June-November. Do I immediately cancel the monitoring service and notify both the previous owner and new owner in addition to the Fire Marshal of the cancelation? Do I also request an address from the previous owner to send a refund for the unused service? Thank you, Bryan ************************* Response ************************* If you haven’t started service for the new owner, don’t. It’s simple, do no alarm services without a signed contract. If you have been providing the alarm service but had no idea that your subscriber was not still the occupant using the alarm, notify the new occupant that you are terminating immediately. If you know, or should have known, that a new occupant is using the alarm and you continued alarm service then provide a reasonable notice that the alarm service is terminating because there is no contract. If a fire alarm and AHJ is required to be notified, send the notice. Do not continue monitoring indefinitely for a new owner who has no contract with you. Give prompt notice—24 hours is reasonable under these circumstances—by email, text or telephone that monitoring will be terminated unless the contractual arrangements are promptly resolved. Notify the former owner if the customer remains under contract and send the new owner a copy so there is no shutdown without warning. The sale of the business does not release the former owner from the monitoring agreement. If the contract term has not expired the former owner remains responsible for the contract balance unless you agree otherwise. You can offer a practical solution: permit an assignment if the former and new owners sign a K&K Assignment and Assumption Agreement or require the new owner to sign a new K&K Commercial Fire Alarm Agreement. Do not assume that the Fire Marshal must always be notified. Determine whether applicable law or local requirements mandate notice when fire alarm monitoring is terminated. That will depend on the type of system and the jurisdiction. If notice is required, give it; if not, do not create a requirement that does not exist. And do not rush to issue a refund for prepaid monitoring. The former owner’s payment obligation continues through the contract term unless you excuse it. A subscriber cannot avoid the agreement simply by selling the premises or the business. Your contract, your notice and your documentation should make that clear. No refund is required. ************************* 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
