Home Warranty

[DHLEE]

Illinois
Hello all,
I sold a townhome last November and was not aware that I was supposed to provide a home warranty to the buyer. Their attorney called me 3 months after the closing to tell me that they are having furnace problems and need the home warranty. Well, I call a couple warranty companies and get quoted over $400. Well a couple weeks go by and I ask their lawyer if I can just pay a prorated amount of the $379 (the amount on the contract). He says no and I have to pay for the furnace repair and provide a home warranty.
Is there anything I can do about this? I mean, they asked about this 3 months after the closing! I wasn't even aware of it so I suppose it's my attorney's fault as well. Do I have to pay for all this? Please help.

[tryingtoplease]

I'm a little confused. First you say you didn't know you had to supply a home warranty to the buyers. Then you say something about the "$379 in the contract".

I own a HVAC company and refuse to deal with home warranty companies. Getting anything out of them is near impossible and takes hours to accomplish small tasks (i.e., 45 minutes on hold to obtain an authorization number for repair). We did one furnace changeout where they would pay for a new furnace, but not for removing the old furnace and hauling it away. They would not pay for peripherals (gas flex line, sheet metal plenum, etc) but they would pay for labor to install items. It was fun invoicing that one.

The point of this is to consult with that thar attorney and see if you can't work something out. Wasn't the furnace inspected prior to closing? That's one of our most common calls. However, we can't predict what will happen 3 months down the road. What repairs are they saying need to be done now?

[BradleyS]

RE Broker in Kansas:

Did you have a closing at the escrow company or the title insurance company?

If so, is the home warranty on the HUD-1 (Settlement Statement)?

If not, why did the closing office exclude it from the HUD-1?

A title or escrow company should close AS PER CONTRACT and should have been deducted from your proceeds.

Q: I sold a townhome last November and was not aware that I was supposed to provide a home warranty to the buyer.

A: Ask your real estate agent why he didn't tell you about this.


Q: Is there anything I can do about this? I mean, they asked about this 3 months after the closing!

A: Ask them for proof that the furnace was bad when you sold them the house.

[PghREA]

Originally Posted by seniorjudge

Q: I sold a townhome last November and was not aware that I was supposed to provide a home warranty to the buyer.

A: Ask your real estate agent why he didn't tell you about this.


Q: Is there anything I can do about this? I mean, they asked about this 3 months after the closing!

A: Ask them for proof that the furnace was bad when you sold them the house.

What did the buyer's home inspection say about the furnace? If there was a problem with the furnace, this should have been addressed prior to closing. Since this is winter, I'm guessing that the furnace worked correctly for the first 3 months the buyer was in the house. It has been my experience that appliances and systems work until they don't - so I'm not sure if the furnace not working now is your problem. However, if the sales contract said you would provide a home warranty, then that should have been done at closing.
You need to talk to your Realtor and closing agent about this.