rental item


Items which cannot be included in a sale because the Seller rents them rather than owns them.

It is common for certain household items, such as a water heater, furnace, or security system, to be rented rather than owned.

When a Seller has rented an item of this sort, they cannot legally include that item in the sale of their proprty. A person can only sell something that they legally own!

To get around this problem, the Seller will usually ask the Buyer to assume the rental contract. This is accomplished through a clause in the Agreement of Purchase and Sale.

Most rental contracts allow a Buyer to assume the rental contract, but some rental contracts have a "no-transfer" clause. In those cases, the Seller is forced to buy out the contract, and the Buyer must arrange a new rental themselves.

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