Home Warranty or Waiver

Home Warranty or Waiver

Home Warranties are in the Best Interest of both Seller & Buyer.

1. A Home Warranty is a relatively inexpensive way to ensure that Buyer will have some peace of mind knowing that if anything goes wrong after Close of Escrow, costs for covered repairs may be drastically reduced with Home Warranty coverage.
2. Often a seller will purchase the Home Warranty as a way to mitigate any accusation of not producing a home free of defect. It is now required by state law that New Home Builders provide one and is a good idea for anyone selling an existing home.
   1. There are limitations to coverage [be sure to go over Home Warranty Brochure with your clients].
   2. There is a service call fee [currently $65] for each covered repair. Example: If dishwasher needs to be repaired or replaced, client should only have to pay $65.
   3. When you discuss Home Warranty coverage, you may want to suggest that client consider choosing to have additional coverage added for additional cost.

RPA Paragraph 7.D.10 deals with Home Warranty. [Check appropriate boxes.]

(10) __Buyer __Seller shall pay for the cost, not to exceed $ _______________, of a standard (or upgraded)one-year home warranty plan, issued by _____________________________________________, with the following optional coverages: __Air Conditioner __Pool/Spa __Other: __________________________.
Buyer is informed that home warranty plans have many optional coverages in addition to those listed above. Buyer is advised to investigate these coverages to determine those that may be suitable for Buyer.
OR __ Buyer waives the purchase of a home warranty plan. Nothing in this paragraph precludes Buyer’s purchasing a home warranty plan during the term of this Agreement.

1. Always “over-estimate the cost for a Home Warranty as it states: “not to exceed.”
2. Recommend putting “Seller’s Choice” for Home Warranty company. This will make it easier for Seller to accept and most Home Warranty companies are equally good.

Disclosure that the Buyer may obtain a Home Warranty is a policy of Keller Williams Realty.

1. This is to fully disclose to the buyer that there is a way to protect themselves from possible unknown/undiscovered defects in the house they are purchasing.
2. Our disclosure of this protection is an act of our fiduciary duty to them.
3. Our policy regarding Home Warranty coverage also helps to keep our E & O Insurance Premiums low.

Disclosure that the Seller may obtain a Home Warranty is also a policy of Keller Williams Realty.

1. This is to fully disclose to the Seller that there is a way to protect themselves from possible unknown/undiscovered defects in the house during the listing period.
2. Our disclosure of this protection is an act of our fiduciary duty to them.
3. Seller’s coverage is usually under $1.00 per day during the listing period and most Home Warranty companies will not charge if the home does not sell.
4. With Seller’s Coverage, if any covered repair becomes necessary during the listing period, it should be limited to cost of the service call fee.