Home Warranties Can Aid Buyer and Seller
Many home purchasers erroneously assume that the Seller is always somehow liable when there is a defect or failure found in the home’s cooling, heating, plumbing, electrical and/or appliances after the Buyer moves in. Unless otherwise provided for in the contract however, risk of loss often falls on the Buyer. Even where the contract provides that heating, plumbing, pool & equipment, electrical, etc. be “operative” on or until date of possession, disputes can always arise as to when the breakdown occurred, who is responsible, how the repairs are to be funded, and when they are to be made.
Home warranty plans go a long way to alleviate these risks and concerns. For a modest price (currently basic coverage can range from $300 to $500, slightly more for optional coverage), sellers can provide buyers a one year home warranty covering, specified heating, plumbing, electrical, water heater or appliance breakdowns. This is the same coverage buyers receive when purchasing a new home.
Coverage under most plans commences at closing and is not paid for until closing. (many commence during the listing period so the seller is also covered while selling their home). In all cases, there are important limitations and exclusions (example: appliances/systems must be operative at commencement of coverage).
Many home purchasers erroneously assume that the Seller is always somehow liable when there is a defect or failure found in the home’s cooling, heating, plumbing, electrical and/or appliances after the Buyer moves in. Unless otherwise provided for in the contract however, risk of loss often falls on the Buyer. Even where the contract provides that heating, plumbing, pool & equipment, electrical, etc. be “operative” on or until date of possession, disputes can always arise as to when the breakdown occurred, who is responsible, how the repairs are to be funded, and when they are to be made.
Home warranty plans go a long way to alleviate these risks and concerns. For a modest price (currently basic coverage can range from $300 to $500, slightly more for optional coverage), sellers can provide buyers a one year home warranty covering, specified heating, plumbing, electrical, water heater or appliance breakdowns. This is the same coverage buyers receive when purchasing a new home.
Coverage under most plans commences at closing and is not paid for until closing. (many commence during the listing period so the seller is also covered while selling their home). In all cases, there are important limitations and exclusions (example: appliances/systems must be operative at commencement of coverage).
When order a home warranty read the coverage and know what you are purchasing.
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