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Home Warrenty - Good Deal or Not?
What is Title Insurance?

HOME WARRANTY - GOOD DEAL OR NOT
One of the most common products sold in conjunction with every residential Real Estate transaction is the Home Warranty. Just about every realtor and buyer expects to see one in every purchase. The real question is whether it is a good deal for the seller, the buyer, both of them, or neither…..

The most common misnomer about the warranty is that is "covers everything". Most policies provide a very basic coverage, usually on only major items, such as appliances, air conditioning, water heaters, etc. Some policies offer a sort of "premier coverage", which will cover additional items such as faucets, toilets, air filters, even garage door hinges. However, most policies have limits on their policies. They will not cover pre-existing conditions, excessive wear beyond the normal, nor will they repair damage done accessing the area being warranted (like drywall repair needed to get to a plumbing leak)

For the seller, the home warranty comes in handy because it offers a sense of closure when selling a home. It limits the necessity of the buyer to contact the seller for things that break once they have taken possession. It doesn't take the place of disclosure, however, it does help with future breakdowns.

For the buyer, it definitely helps offset the costs of home ownership. Statistically, home owners can spend up to 3% of the property's value in repairs yearly. The cost of the trade call is substantially less than the cost of a new air conditioner.

All in all….even with its limitations, the home warranty is still a pretty good deal for all parties. Feel free to call my office to discuss which ones offer the best service.


WHAT IS TITLE INSURANCE?
Title Insurance, which insures the buyer of the ownership of the property, should be obtained when real property is purchased. The title policy is written after an extensive examination of the public records and the recording of the required documents in the escrow. Many different types of extended coverage are available for the new owner. A new institutional lender will generally require additional protection.

The title insurance premium is a one-time fee, paid at the close of escrow in California. The determination of who pays for the policy is not uniform from county to county. In Riverside County, it is customary for the seller to provide the cost of the title policy, and the buyer to pay for any additional coverage requested by the institutional lender. However, is almost every case, the question of who pays these fees is a matter of agreement and negotiation between the parties. In the case of FHA or VA transactions, the escrow office must follow the guidelines as required by the lender and/or government agencies.

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