Home Warranties Can Aid The Buyer
Many home purchasers assume that the Seller is always somehow liable when there is a defect or failure 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 when the contract provides that heating, plumbing, pool and 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 theses risks and concerns. For a modest price (basic coverage is $350 to $400, slightly more for optional coverage), Buyer can obtain a one-year warranty covering specified heating, plumbing, electrical, water heater, disposal or appliance breakdowns. Coverage under most plans commences at closing and the cost of the service call is minimal. The cost for the warranty is negotiable between Buyer and Seller at time of contract negotiations.
