Did you know that California home resale buyers and sellers must negotiate a home warranty or waive it?
Our California Association of REALTORS, Penninsula Regional Data Service and San Francisco contracts make it super easy to do this by providing a handy section to negotiate or waive it right on the contract!
Home warranties benefit both the home buyer and seller in a pending sale transaction. After close, it provides the buyer with piece of mind knowing that if any issues such as plumbing or electrical come up after close of escrow, for a small deductible, it will be fixed or replaced (First American Home Warranty has a $75 service fee).
Some home warranty plans cover larger ticket items like roof, appliances, and air conditioning.
For the seller, phone calls from the buyer demanding repairs be made after close are dramatically reduced since the buyer can simply call the home warranty company instead.
Note that once the buyer has removed the physical inspection contingency and/or escrow has closed, typically the seller is no longer obligated to complete any additional repair/replacement requests.
Unless the circumstances are unusual (house is a tear-down or total remodel), it’s a good idea to order a home warranty for the buyer.
There is no customary payee. Seller, buyer or even agents can pay for it. Some brokerages require a home warranty because it reduces their Error and Omissions insurance premium.
Your TC’s at EscrowCoord.com always check this very important part of the contract to confirm if a home warranty has been negotiated or waived. We make sure YOU’RE covered! Call Diana Turnbloom today at 925-305-9625 to find out how we compliment your real estate team of experts!