A residential service contract or home warranty is usually purchased when a house sells in the resale market. A home under warranty may be more attractive to prospective buyers. It covers major appliances and systems which are in proper operating condition at the time of closing and usually carries a one-year service agreement. It is an agreement on the part of the issuer (the residential service company) to repair or replace certain named components or systems within a home that fail due to normal wear and tear during the contract term. A service fee (a deductible ranging from $35 to $125) may be charged for each service call, and the homeowner is protected against the costly expense of a major breakdown or multiple breakdowns which can occur when a change of ownership and lifestyle subject the equipment to different usage. Show
Most residential service contract companies provide similar coverage, at a similar cost. Each company will have its own plans and optional coverages. Additionally, many companies offer coverage to sellers during the term of the residential listing agreement. The Residential Service Company Act (Article 6573b, Vernon's Texas Civil Statutes) has been administered by the Texas Real Estate Commission since 1979. It provides for the licensing and regulation of residential service companies who provide residential service contracts, also known as home warranties, to the public. Below you will find policy information from different residential service companies who have provided links to those policy specifics. Whether you’re buying or selling a home, a home warranty needs to be covered by the closing costs. But what is a home warranty? Who covers it? And do you need it? We’re about to give you the answer! A home warranty is a contract that protects your home’s appliances and systems like plumbing, electrical, HVAC, refrigerator and freezer, washer and dryer, and oven and stove. For those with pools or hot tubs, you can include add-on coverage for an extra amount. For a monthly or annual cost, a home warranty will repair or replace appliances that are malfunctioning or have broken down due to normal wear and tear. Contracts typically last one year and can be renewed. Remember: a home warranty is not home insurance. Home insurance protects your home from damage due to accidents and natural disasters, but not normal wear and tear. That’s where the warranty comes in. Do I need it for my Leander home?Most real estate agents (and Mallach and Company included) recommend getting a home warranty with your home purchase. This way, the seller is protected from liability if applications break down after the home purchase. As a seller, we recommend having a home warranty to protect you after the real estate sale, and you can avoid any post-sale complications. This also makes your property easier to sell. While it usually won’t cover the entire cost of replacing an appliance, it will help lower the cost depending on your warranty. Who pays for it during a real estate transaction?Sometimes home warranties are included in closing costs, but it varies from sale to sale. Sometimes buyers will ask the seller to pay for some or all of the closing costs. If that’s the case, the sellers are only responsible for those costs if they agree to these terms. The price ranges from $500 to $700 in Texas and is negotiable between buyers and sellers. It’s worth noting that if the seller already has an existing home warranty, they can transfer it to the buyer. The Consumer Protection Notice and Texas Real Estate Commission Information About Brokerage Services are statutorily required forms for consumer information to help ensure that… livinglubbocksocial with Krista Jenkins & Maverick Foy, REALTORS® 1 followers The Consumer Protection Notice and Texas Real Estate Commission Information About Brokerage Services are statutorily required forms for consumer information to help ensure that consumers of Real Estate Services better understand how a broker or agent can represent them and where to find help if they need it.The Consumer Protection Notice and Texas Real Estate Commission Information About Brokerage Services are statutorily required forms for consumer information to help ensure that consumers of Real Estate Services better understand how a broker or agent can represent them and where to find help if they need it.Who pays for home warranty buyer or seller in Texas?It is common practice for the buyer to ask for a seller to purchase a home warranty, although it is not required that the seller pay for it (and the buyer can still purchase one on their own if they would like).
Are home warranty companies regulated in Texas?In Texas, the department that regulates home warranty companies is known as the Texas Real Estate Commission (TREC). It is responsible for licensing of Residential Service Companies (RSCs) or popularly known as home warranty companies.
Is a home warranty worth it for a seller?“Getting a home warranty when you list your home for sale is a no-brainer because there's no additional cost to the seller. The price of the warranty comes out of the proceeds, not out of your pocket. Plus, for the most part, the seller's coverage is free, even if they've used the warranty to make repairs.
What does the Texas Real Estate Commission regulate?TREC regulates real estate sales agents and brokers, real estate inspectors, easement and right-of-way agents, education providers, timeshare plans, and Individuals who engage in any of these activity without a license TREC does not regulate every type of professional involved in a real estate transaction.
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