Home Warranties
Many home purchasers erroneously assume that the Seller is always somehow liable when there is a defect or failure found in the home is cooling, heating, plumbing, and 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 repair are to be made.
Offering a Home warranty also makes your home more appealing, especially to first time homebuyers who are already on edge about the process of buying a home.
Home warranty plans go a long way to alleviate these risks and concerns. For a modest price (currently basic coverage is $299 to $399, slightly more for optional coverage), Seller can provide to Buyer a one year warranty covering, specified heating, plumbing, electrical, water heater or appliance breakdowns.
Coverage under most plans commences at closing (although some can be made to commence during the listing period as well). Sellers can purchase a combo warranty, which covers the property during the listing period and after sell carries over to the new buyer.
In all cases, there are important limitations and exclusions (example: appliances/systems must be operative at commencement of coverage).
