Most homeowners read a water service agreement for the start date and the monthly cost, then discover the exit rules only when they want out. Reading the exit terms first keeps you from paying for a service you no longer want, or from losing equipment you thought was yours.

Notice period and how notice must be given

Find the number of days' notice required to end service and the exact method the company accepts, such as a signed letter, an email to a named address, or a phone call that must be followed by writing. A notice sent the wrong way may not start the clock. Ask the company to confirm in writing when service actually stops.

Who owns the equipment

Check whether the tank, filter, or unit is owned by you or by the company. If the company owns it, find out whether it will be removed, what condition it must be left in, and who pays for removal. If you own it, check whether the company can charge for any part of it and whether the agreement requires you to keep the company as your service provider.

Early-end fees

Look for the fee that applies if you end service before the term is up. Ask how the fee is calculated, whether it shrinks as the term runs, and whether it applies if you move out of the service area or the home is sold. Compare that fee with the cost of simply continuing to the end of the term.

Transfer if you sell the home

If you may sell, ask whether the agreement can be transferred to the buyer, what the buyer must do to take it over, and whether the company charges for the transfer. Some buyers will want the equipment and the service history. Make sure the agreement lets you hand both over cleanly.

Records and prepaid balances

Ask what happens to your service history, such as filter change dates and test results, when you leave. Find out whether prepaid amounts are refunded, on what timeline, and whether the refund is reduced by any fee. Get a final service visit or a written close-out statement if the company offers one.

Comparing companies

When you compare two companies, put their exit terms side by side with price and service visits. If you are weighing how much a company's reputation should count, the Award Methodology page explains how winners are chosen, which can help you judge that information for yourself.