Here's what you need to know when buying a home with rental contracts, especially if you're purchasing in Southwestern Ontario where I work. Many homes are sold with rental items, the most common being a hot water tank which could be rented through providers like Reliance or Sandpiper.
Other potential rental items could include a furnace and air conditioning system, or even a water purification system through companies like Culligan. When you're finalizing the agreement to purchase the home, you may have the option to assume these rental contracts.
However, it's crucial to know that you have the right to renegotiate these contracts or request the sellers to buy them out before the closing date. By doing so, once you take possession of your new home, you won't be burdened with monthly bills for the hot water tank, furnace, air conditioning, or any other rental items previously agreed upon by the original seller.
So, before signing the paperwork, make sure you consult with your real estate agent during the home buying process to understand what you're agreeing to. I hope you found this information helpful. Take care.