Perhaps one of our list attorneys knows the answer. Here's a summary: Seller of a property has a service contract and oil purchase contract with a local oil company. Service contract runs from April 1, 2006 to March 31, 2007.
Seller sells the property in the fall of 2006 and tells the buyer that there is a contract, and that he has contacted the oil company and ascertained that it is transferable. Buyer contacts oil company in November 2006 and signs up for a year of oil deliveries at the price they state. Oil company paperwork buyer signs references service contracts, saying various ones are available, but does not provide a copy of the contract the buyer has assumed from the seller, and space for contract info is left blank on the form buyer signs. Heater is ancient, and after the spring 2007 heating season ends, buyer plans to take it out of service and replace with separate heaters for each apartment before the heating season of 2007. In March 2007, buyer calls oil company and asks them not to automatically deliver fuel any more, since heater will be replaced in summer 2007. Oil co. reps says no problem; just call for deliveries as needed. Oil company faxes paperwork confirming new arrangement, and there is no mention of penalties and no bill for penalties. Twice, buyer calls for deliveries, gets faxes, gets bills, pays them. When a bill for a new service contract comes in March, 2007, buyer doesn't pay it. Buyer contacts oil company and explains that this contract isn't wanted. Oil company rep says no problem; it will be removed from billing. Next month, another bill arrives with charge still on it, plus a late fee. Buyer calls oil company and is told that the service contract "renews automatically at expiration," so the $189.95 is due. Further, buyer is told that taking the oil off automatic delivery violated the oil purchase agreement - separate from the service contract - and there will be a $299. charge for the early termination of that agreement. This gets complex, so my current questions are just: 1. I understand that in real estate, it isn't legal in PA for an agent to have a contract with a client for more than one year, and it can't automatically renew. Does this also apply to one-year heater contracts, or can they automatically renew (in tiny, tiny print, and without company reps telling you so, or telling you to put a cancellation request in writing, or giving any warning at all when you call to say you don't want the renewal)? 2. If an oil company contract says you must buy all oil from them during the contract period, but you discontinue use of the heater and don't buy oil from ANYBODY (from mid-April till the expiration in November; most of it not the heating season) , can they charge you a fee? Can they do so even if they don't warn you when you phone, or in a fax confirming the change to your account, or in subsequent bills? Any suggestions from anyone with experience here would be appreciated, off list, please. Melani Melani Lamond, Associate Broker Urban & Bye, Realtor 3529 Lancaster Ave. Philadelphia, PA 19104 cell phone 215-356-7266 office phone 215-222-4800, ext. 113 office fax 215-222-1101 ************************************** See what's free at http://www.aol.com.
