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Thread summary:

Real Estate: Realtor, home buyers, agent, insurance, homeowners warranty.

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Old 07-19-2008, 07:08 PM
 
830 posts, read 1,063,855 times
Reputation: 129

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The home inspection on my house turned 4 issues that I had no intention on fixing any of them with the exception of fixing a sewer pipe that had a whole in it. I said I would fix it only because my son was living in the house and I didn't want him to get sick. I didn't say I would REPLACE IT. Anyway, the realtor told the buyers I would replace the pipe. I refused to add this to the P&S or any other repairs as they were getting a huge discount on the house and they should be happy with that plus 2 of the problems should not have even been an issue.

The realtor was worried the buyers were going to walk so she proposed that I put a home warranty policy on the house and wait two weeks and then have the problems fixed by the home warranty co.

First, I was upset because I found out she knew that her company had offered a special on the HW as a bonus and instead of my realtor taking advantage of this special to enhance/market the sale of my home ... the agent would rather use it as what I see is a scam! I fired that realtor but I had to use a new realtor within the company so when I spoke to the new agent ... she backed up the first agents idea of using the HW to fix repairs that had turned up in a home inspection.

Is this really OK? Two realtors say it is? I can't believe that the home warranty companies are that stupid. Any other realtors back this up? Anyone else come across such a thing?
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Old 07-19-2008, 07:31 PM
 
Location: Salem, OR
15,572 posts, read 40,409,288 times
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It is not and you will most likely get denied in the future. While it does occur in the real estate industry it is fraud. Home warranties only cover problems that were not preexisting.
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Old 07-19-2008, 07:38 PM
 
Location: Barrington
63,919 posts, read 46,707,495 times
Reputation: 20674
HW policies vary. Some cover the owner through closing. Other policies typically cover the buyer for 1-2 years. And some are a combination. Not all risks are covered.

What happened in your situation makes me uncomfortable on a personal and professional basis. Having said this, what you describe happens all the time. Insurance fraud is a crime.

Just curious, have you disclosed this pipe situation to prospective buyers?
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Old 07-19-2008, 07:40 PM
 
Location: DFW
40,952 posts, read 49,155,879 times
Reputation: 55000
Usually Warranties are to cover problems after the purchase.

They do sell coverage for the seller that might cover problems during the listing period. Maybe this is what your agents were suggesting ? To put it in place when you list the house ?
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Old 07-19-2008, 08:54 PM
 
830 posts, read 1,063,855 times
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Quote:
Originally Posted by Rakin View Post
Usually Warranties are to cover problems after the purchase.

They do sell coverage for the seller that might cover problems during the listing period. Maybe this is what your agents were suggesting ? To put it in place when you list the house ?
Rakin, how far will you go to cover for a realtor?
It seems that what she was trying to do was fraud. But if I understand MAM, had my realtor put the warranty on the house before the inspection these things may have been covered because I honestly didn't know these problems existed. Actually the sewer pipe problem was the only one that was a safety issue. The lead water pipe is common in any house built before 1970 and the town wasn't interested in replacing these pipes. I had proof that 2 weeks prior I have the heating system cleaned and inspected including the oil tank and it was given a thumbs up. The home inspector over reacted at the rust on the outside of the tank. The only other problem was old wires in one bedroom that wasn't renovated because it was in good shape. No biggie.

I wonder if any of these things would have qualified even if the HW was in place at the proper time???
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Old 07-19-2008, 09:18 PM
 
Location: DFW
40,952 posts, read 49,155,879 times
Reputation: 55000
Quote:
Rakin, how far will you go to cover for a Realtor?
Don't know where you get this.

My statement was purely fact, Residential Service Contracts ( Home Warranties) can be put on the house by the seller when they list a home. They can cover problems that arise when the house is listed. It's a coverage the companies offer so hopefully the buyer will continue the coverage.

Where did this come off like I was trying to cover somebody ? I think you read something into this that's not there.
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Old 07-19-2008, 09:20 PM
 
Location: Salem, OR
15,572 posts, read 40,409,288 times
Reputation: 17473
I don't think so. They have extra insurance that you can buy, but I don't think so. It's meant to cover an ac that fails, stove that fails, etc.

There are MANY exemptions in these policies, somehow I think a sewer pipe would be one. Old wires, lead pipe would not be covered. If the oil tank failed then maybe...but since the home inspection said it wasn't in good working order then that would most likely negate any chances of it not being preexisting.
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Old 07-19-2008, 09:22 PM
 
Location: Central Texas
20,958 posts, read 45,383,992 times
Reputation: 24740
Quote:
Originally Posted by Rakin View Post
Don't know where you get this.

My statement was purely fact, Residential Service Contracts ( Home Warranties) can be put on the house by the seller when they list a home. They can cover problems that arise when the house is listed. It's a coverage the companies offer so hopefully the buyer will continue the coverage.

Where did this come off like I was trying to cover somebody ? I think you read something into this that's not there.
I think she did, as well.

All of the Residential Service Contracts that I know of offer coverage for the buyer and an optional coverage for the seller, usually for 6 months while it's listed for about $50, give or take. Thus, anything that would be covered for the buyer is also covered for the seller from listing (if they purchase it then) up until closing (with a six month maximum). This is what you described and is hardly "covering" for anybody.
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Old 07-19-2008, 09:38 PM
 
Location: Where I want to be!
6,196 posts, read 5,443,053 times
Reputation: 2578
Come on Rankin! That was just to simple. You fell for it, lol!
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Old 07-19-2008, 10:01 PM
 
Location: DFW
40,952 posts, read 49,155,879 times
Reputation: 55000
Quote:
Originally Posted by the painter View Post
Come on Rankin! That was just to simple. You fell for it, lol!
Yeah, I'm a little too quick to trust that most people want honest answers and opinions. You'd think us guys would get a little more wisdom as we get older.
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