The 60-Second Pre-Sign Security Contract Checklist
TL;DR
Six checkboxes catch 90% of bad home security contracts. Each one needs a specific number or named clause in the contract — not a verbal promise from the rep. If any one of the six gets a "we'll get back to you" or "trust me on that one," the contract is the problem. Sixty seconds at the kitchen table saves $1,000s over a 36-month term.
The six boxes
☐ 1. Early termination fee formula
Ask: "What does it cost me to cancel at month 12?"
Acceptable answers:
- "Your monthly rate × remaining months × 75%" (ADT standard)
- "Your monthly rate × remaining months × 100%" (Brinks-style — more aggressive but transparent)
- A flat dollar number specified in writing
Red flags:
- "We don't usually have to charge it"
- The clause references a percentage that exceeds 100%
- The number is not derivable from the contract terms
☐ 2. Auto-renewal + notice period
Ask: "What happens at the end of the term, and how do I cancel?"
Acceptable answers:
- "It auto-renews for X months unless you give 30/60-day written notice via certified mail to address Y" — and that exact language is in the contract.
Red flags:
- "Just give us a call" (verbal cancellation rarely binds)
- 90+ day notice window
- The notice address is missing or buried
☐ 3. Equipment ownership
Ask: "Do I own the equipment outright, or is it financed/leased?"
Acceptable answers:
- "Owned outright, paid for in full at signing" (cleanest)
- "Leased, returned at end of contract, no buyout" (clean if you accept the model)
- "Financed via [lender] over X months, you receive a separate loan agreement to sign" (transparent — read the loan agreement)
Red flags:
- "Free equipment" without naming a financing partner
- "Just one signature" when there are clearly two contracts on the table
- The bundled monthly is significantly higher than monitoring-only competitors
☐ 4. Annual rate escalator
Ask: "What is the annual rate escalator percentage?"
Acceptable answers:
- "0%" (negotiate to this if possible)
- "3% capped at no more than once per year"
- A specific number written in the contract
Red flags:
- "Only if our costs go up" (uncapped is the red flag)
- The rep does not know
- The number is buried in the appendix
☐ 5. Move clause
Ask: "What happens if I move?"
Acceptable answers:
- "Outside the service area: ETF waived with closing statement or new lease"
- "Inside the service area: free transfer, no fee"
- The exact documentation required is named in writing
Red flags:
- "We'll cross that bridge when we come to it"
- The move clause exists but requires the company's "sole discretion" to enforce
- Equipment must be returned even on a covered relocation
☐ 6. Monitoring center certification
Ask: "Is the monitoring center UL-listed and Five Diamond certified?"
Acceptable answers:
- Yes to both, with the specific monitoring center named (often Rapid Response, Centra-Comm, COPS Monitoring)
Red flags:
- The rep cannot name the certifications
- The monitoring is "outsourced" without a named partner
- No 24/7 redundant centers listed
How to use the checklist
Print it. Bring it to the kitchen table. Walk the rep through it slowly. Write the rep's answers next to each box. Then ask the rep to show you those answers in the contract, in writing, before signing.
If the rep can do that for all six in plain English: this is an honest contract. Sign with confidence.
If the rep dodges any one of the six: the contract is the dodge. Walk away, or use the federal 3-business-day cooling-off period to back out if you already signed.
What if I already signed?
You may still have time. The federal FTC Cooling-Off Rule gives you 3 business days to cancel any contract signed in your home for $25 or more. If you signed today or yesterday, send certified-mail cancellation today.
After the 3-day window: scan your contract through the Contract Analyzer for an A-F buyer-defense grade and a list of every clause that may give you leverage.