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 is $299 to $385, 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).
In all cases, there are important limitations and exclusions
(example: appliances/systems
must be operative at commencement of coverage).
Mike
and Peggy Linton