Since the revision of the Utah Real Estate Purchase Contract went into effect on Jan 1, 2009, it is even more important for homebuyers in Salt Lake and indeed all of Utah to protect themselves with a home warranty.
The section of the Utah Real Estate Purchase Contract that required home sellers to warranty all plumbing, heating, air coinditioning, appliances, roofs etc. has been eliminated, so essentially..well not essentially but actually, home purchases in Utah are “as is“.
What Is A Home Warranty?
First, a Home Warranty is for Your protection after you move into your new home. It is essentially an insurance policy. Coverage begins on the day you take possession of your new home and can cover, depending on the company, appliances i.e. fridge, stove, washer, dryer, water heater etc, the heating, electrical, plumbing (within the house, not outside), air conditioning , foundation and roof for the period of usually one year. Some companies offer an extension for an additional fee.
How Much Is A Home Warranty?
Fees for a home warranty can run from $300-$450 depending on the company and what kind of coverage you choose, and In the Utah Real Estate Purchase Contract; there is even a section that deals with Home Warranties. You must state whether you are requesting one or not. The fee is paid as part of closing costs at settlement and may be paid by either the seller or the buyer.
Who needs a Home Warranty?
Everyone purchasing an existing home, because although everything might be great during your inspections, some times “stuff” happens. We have seen water heaters burst, whole plumbing systems give out, furnaces that just wanted to die, and just about everything under the sun! The cool thing about it…you call the home warranty people, they send a licensed company out to assess the problem, you pay a service call fee (around $60 or so again depending on the company) and voila….it is either fixed or replaced!
What Does A Home Warranty Do For You?
What this does for a buyer and the seller is keep you out of litigation. The new Purchase Contract in Utah states that the home is pretty much sold “as is” and there are no warranties implied or stated (and we are talking only about Utah, where we are licensed, we do not know about other states’ laws), so a home warranty is a great solution for your protection! We always recommend it, we should have bought one on our new house, but we didn’t listen to us…and we wish we had…but that’s another story.
There are many Home Warranty Companies…..check out what they cover, and how much they charge, but we highly recommend that you include one in any home purchase you make! If you want some recommendations, give us a call!
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