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Unfortunately, there is no one way for brokers to avoid claims and lawsuits. However, home warranty plans are one area where the buyers and sellers, along with their agents, can protect themselves from the risks of defects and resulting claims.
For an annual fee (under $500), a home warranty company will repair defects which arise from normal wearing of appliances, and the property's major systems - including electrical, plumbing, heating and air conditioning. Most home protection companies also offer additional protection for other items such as swimming pools.
Home warranty plans provide benefits to the buyer, seller and broker. The buyer gets a certain degree of security and predictability regarding the condition of the purchased property. And the seller/broker is not faced with an inflated lawsuit resulting from a modest problem with an appliance or system.
Often, for a modest co-payment (generally under $50), buyers can contact the home warranty company whenever they have a problem with a covered appliance or system. The home warranty company will likely refer the matter to a qualified technician who will evaluate and repair the problem. In cases where the problem is irreparable, the home warranty company may even pay to replace the item(s).
Of course benefits are greatly impacted by the choice of home warranty companies. In recommending a home warranty company, it is important to consider a number of issues:
- The company should be an established and respected national entity.
- Representatives should be accessible 24-hours a day.
- Referral to an experienced, licensed and insured technician should be given within a reasonable period after the call.
LI>The home warranty company should provide a clear statement of coverage and costs within its plan upon any consumer's call.
If a home warranty company meets the above criteria, then it is likely to meet the needs of all parties.
Copyright 2000 - Spile & Siegal, L.L.P.; Phone 818-784-6899; Fax 818-784-0176; E-mail: counsel@spile-siegal.com; Website: http://www.spile-siegal.com |
