FEBRUARY 23, 2016
    Thinking about exit doesn’t necessarily mean thinking about selling to an outsider.  Exit can also mean transition.  Many of us prolong protracted planning, whether it be estate planning or succession planning with our businesses.  Both areas are extremely important to ensure orderly transition.  The issue with waiting on your plan, however you decide to transition, is that once you NEED to exit it is often too late for a “best case” transfer.  And, if you have someone in mind as an heir apparent, without planning and papering an orderly transition you may end up with a number of negative raminifcations, the first two that come to mind, (1) you or your estate seeing less money for your ownership interest, and (2) disadvantageous tax ramifications for your transition.  Having a succession plan, or forming one can start when you start.  IF you own your company or will own your company with a partner, please make sure you have an operating agreement for a company or shareholder agreement for a corporation in place when you start, one that has a buy out provision or insurance provisions you can live with.  If your heir apparent uncloaks themselves later on and you need to change your initial buy out or transition plan, once you have an idea in mind, don’t keep it to yourself, call us to discuss and we can plan how to best implement.  Our conversation will most certainly include your accountant.  While we’re on the topic, you should all have a Will in place, unless your succession plan is to give your money to Uncle Sam.
Jennifer Kirschenbaum, Esq. 
Kirschenbaum & Kirschenbaum, P.C.
200 Garden City Plaza
Garden City, New York 11530
(516) 747-6700 x 302 

    With respect to your response published on February 16th, I offer a few brief comments.
1- while I understand your "logic", I don't think it is as simple as "sale or lease" as you suggest, and I definitely don't agree with the gardener and rake analogy.  We are providing a service.  Maybe if the service charge was itemized as part for service, part for lease/rental, then it would be a different story, but that is not at issue here.
2-"Voluntary systems" are those installed in NYC buildings that are not required by the City.  Sprinkler alarm systems are the primary example, which have been relied on by building owners for over a century for insurance purposes.  And you are correct that companies providing voluntary services must do so in accordance with FDNY rules, which we do (but others, including some of your readers, do not)
3- With respect to everything else you said, I agree with so you are obviously right.
4- Thanks for the plug to our website.
    Finally, moving to the attempted comeback from the anonymous "Right to the Point", I will not bother to further engage, except to say, sir--- you are not anonymous.
Robert Kleinman, Chairman and Counsel
AFA Protective Systems
With regard to fire system leasing:   Whether sold, leased or rented. When all is said and done regardless of the amount of paperwork.............
You will be dealing with a number of different people
1) Property Owner
2) Local AHJ
3) OSHA inspector
4) Your insurance company
5) The customer’s Insurance company inspector
6) Sprinkler contractor
8) Tenants insurance company
9) Elevator contractor
10) Any other interested party
At some point in this relationship you will become part of some agreement directly or indirectly.
John W. Yusza, Jr.
Taking over alarm system
    I am taking over an ADT account for monitoring.  They are a 2 story home with only one smoke detector currently installed on the upper floor.  I intend to make them aware of current code requirements.
If they refuse to install the additional smokes, can I get them to sign a waiver on the sale agreement and still take the monitoring?  I use your contracts.
Thanks in advance.
    You should be using two forms for this “take over”.  The first is the Residential All in One.  That agreement specifically addresses a fire alarm in a residence and it offers two options, system not to code and system to code.  Clearly in your case the system will not be to code and that will be noted on the All in One.
    The second form, Disclaimer Notice, was created for exactly this type of transaction.  This form is not a contract but an acknowledgment from the subscriber regarding certain facts surrounding the entering of the agreement for services with you.  In your case the Disclaimer Notice will note that you are taking over an existing system; you have surveyed and inspected the system; the system is not code compliant in noted respects; the system may need repairs in noted respects; the subscriber has declined repairs or upgrades.  
    So the “waiver” you’re looking for is essentially found in the Disclaimer Notice.  That form, together with your Residential All in One, if properly filled out, completed and signed by the subscriber, should provide the contractual protection you are keenly and wisely seeking.