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After Closing - Dealing With Buyers

7 years ago

I purchased a one year home warranty as the seller of our prior home. Three months after closing the Home warranty company went out of business. There agent contacted me and asked if I would purchase another home warranty as they bought the home with the understanding it would come with a one year home warranty. I agreed and purchased another warranty. Another two months later I get a email saying the warranty I just bought was not acceptable as it was only basic and they need to repair the furnace which was not under the basic policy I recently purchased. They stated the binding agreement for the purchase of the home requested a one year warranty on all major appliances. Am I obligated to purchase a third home warranty?

Comments (18)

  • 7 years ago

    You are under no obligation for anything. It was nice of you to purchase another one. Once its closed, its closed. You did everything in good faith that you could do. They are on their own.

  • 7 years ago

    I wouldn't buy another one. Change you email and phone number so they can't bother you anymore. You have been more than fair. Probably the cost they would spend in any legal action would cost more than the furnace repair.

  • 7 years ago

    Wondering if furnace would even be considered to be an appliance? Not something that I would think of when naming appliances. Perhaps it is a regional thing.

  • 7 years ago
    Speak with an attorney. While you'll get a bunch of perspectives from posters, you want to find the solution that will not lead to legal troubles.
  • 7 years ago

    Buyers sound like entitled jerks who want you to buy a new furnace for them. You'd have to check the policy terms of coverage for both policies*, but yeah, I don't think of a furnace/boiler as a "major appliance" - those would be the kitchen things and probably the hot water heater. And buying a new warranty isn't going to help them because the broken furnace is a pre-existing condition.


    Our agent nabbed us a home warranty in closing negotiations to cover the old 80's appliances that we're going to replace pretty soon anyway and we were like "oh cool", and now we're coming up on ten months since taking possession, and nothing has died, not even the water heater from 1998. We were pretty easy-going buyers - the only reason I'd care to contact the seller (actually the seller's agent - we never met the seller, as she'd moved out of state) would be to identify the painters she hired so I could go destroy them online (they did such a bad job and I'm so pissed - very tedious and unpleasant undoing all their unbelievably sloppy work).


    * Definitely compare the policies - if it turns out the furnace wasn't covered on the original warranty either, tell them to go stuff it. Otherwise, tell them sorry you couldn't prevent the warranty company from going under, and then tell them to stuff it.


  • 7 years ago

    Did you not have an attorney representing you at closing? Refer the matter to him.


  • 7 years ago

    I had a similar situation with the sale of our home. Not the same exactly, but the advice I got from our realtor (8 months after the sale) was that we were not liable for anything anymore. The house and any problems were there's.

    Jane

  • 7 years ago

    Like everyone else said. you bought them a warranty. It's up to the original warranty company to provide the coverage, your obligation is done. Tell them sorry but you're on your own now.

  • 7 years ago
    last modified: 7 years ago

    In some states, transactions close in Title Company offices. An attorney prepares the Deed, but that's it, and would not be involved in this transaction (though I think attorneys should handle property transactions).

    As a buyer, you fulfilled your obligation when you purchased the initial warranty, which you likely did from the company recommended by your agent. This issue should be referred to your agent. The Buyer cannot now come back to you and ask for another warranty months after the fact due to factors beyond your control. You attempted to assist once, purchasing another basic warranty. Was your first warranty a basic one too, or did it cover the furnace? Interested to know.


    At any rate, things have changed. Appliances and major systems have sustained more wear. It is already not working, so any new policy would not cover a pre-existing condition, as explained by others above. They are simply going to have to repair their furnace. It's unfortunate, but I doubt you bought a full coverage warranty the first time either.

  • 7 years ago

    At best,home warranties (actually third party warranties on cars or anything) is a rip off to begin with. They never come through on claims. At any rate you agreed to buy the warranty as a term of contract. You forefilled that obligation,they can sue the original warranty jerks or suck it up. Ignore them.

  • 7 years ago

    My son and his wife bought one of those home warranties when they bought their first home. The furnace failed a short time later and guess what? Furnaces weren't covered.

  • 7 years ago

    Home warranties aren't worth the paper they are written on. Waste of money imo. I would not have purchased a 2nd warranty for the buyers. That the company went out of business has nothing to do with you. You purchased it in good faith. End of story. Do not purchase another one. From years of being on this forum and reading, furnaces are rarely covered by home warranties.

  • 7 years ago

    Even if you purchased a third home warranty, it's unlikely the new warranty would cover the furnace. Those warranties do not cover preexisting conditions. The furnace repair, even if the warranty covered it would be considered preexisting. That should be your final email to them--it won't be covered. Than block their email address.

  • 7 years ago

    Right. They are just trying to see if you will cough up some money. Ignore.

  • 7 years ago

    ^Agree with the consensus. You have already gone above and beyond by purchasing another home warranty to replace the first one. As mentioned multiple times, no warranty co is going to cover a furnace that is broken before the warranty is purchased. Your obligation to these buyers is finished.

    It sounds like a money grab as jn3344 mentions. Don't fall for it.

    BTW, I recommend not purchasing a home warranty. I have found that the actual contracts for the warranty's have many exclusions. Read one and you will see how worthless the warranty is IRL. Don't read the marketing pages, read the actual contract.

  • 7 years ago

    Sometimes HW do work. Our realtor included a home warranty when we bought the house. It was worth it when the microwave died after a few months. The microwave was built-in in a Thermador 3-in-1 wall oven/micro/warming drawer unit and not easily replaced. It took them several tries, a few calls from the realtor to her HW sales rep and 2 different repair companies, but they got it repaired. The MW lasted 8 more years until we were ready to remodel this past year.

  • 7 years ago

    You conveyed a working, marketable HW at the time of closing. The buyers knew the name of the company and therefore could have raised concerns before closing. But not now.