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 ****************************** more on corporation signing for residential alarm services and cancellation notice April 9, 2026 **************************** more on corporation signing for residential alarm services and cancellation notice ***************************** Ken If a corporation or LLC is the named customer for a residential installation do you still need to use a 3 day notice of cancellation form? Bart Didden USA Central Station ***************************** Response ***************************** This comes up more than you’d think, and dealers handle it wrong more often than they should. Since you own a central station monitoring the accounts you have a huge stake in making sure this scenario is handled, contracted, properly. A preliminary issue: make sure the person signing on behalf of the corporation or LLC, the entity, has proper authority. This would ordinarily be an officer or manager. Presumably the entity wants the contract in its name because the property is in its name or it wants to pay for the services through the entity, not personally. It's OK, you're not the IRS. The obvious question is, should the individual(s) living in the house also sign the contract. And, which contract? In this situation the Residential All in One is the best contract to use. It will be signed by the entity. You will need to add a signatory line for the individual intending to occupy the residence; yes they should sign the contract agreeing to all its provisions. This is particularly important when dealing with a small or "close" entity [not a public entity] or an entity with potential for going bankrupt [which is a pretty extensive pool of entities]. But the most important reason the party who is going to occupy the residence should sign the contract is that its that occupant who is likely relying on the alarm system and most likely to be damaged if it fails to work; also, most likely to sue you. While the contract will require the entity to indemnify you, it's easier if the occupant also agreed to the terms of the contract, including all its protective provisions. The argument for using the 3 day notice of cancellation far outweighs the argument for not having to use it. First of all the Residential All in One contains the 3 day notice, alerting the subscriber that there is a right to cancel and the form is attached. Next, there are a bunch of other reasons for using the 3 day notice. It's highly unlikely that the subscriber will exercise its right to cancel within the 3 day period. If it does it's just as likely you would let the subscriber out of the contract. Most of you aren't getting the contract signed by the salesman who is then followed by the installation crew installing the system before the ink is dry on the contract. Using the cancellation form will eliminate any issue whether it was required or not. Maybe the most important reason is that potential buyers of your accounts will want a representation that you complied with the 3 day notice requirement for all residential customers or perhaps "where and when appropriate". You don't want to create an issue that will need to be addressed much later. The bottom line is this. Use the Residential All in One when the premises is a residence, regardless of who the named customer is. Have the actual intended occupant sign the contract as well. I've had huge corporations refuse to "bother" their higher-up executives to sign the contract and in those situations I did advise the alarm company to just have the entity sign the contract and rely on the indemnity provision along with all the other protective provisions. Give the 3-day notice when using the Residential All in One. Don’t cut corners trying to avoid the rescission requirement — it’s not worth it. ***************************** 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
