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Contract Series Paragraph 18

George Clements ~ Greenville, SC Real Estate

 

Paragraph 18 of the Contract For Sale deals with home warranties and looks something like this: 

 

18. HOME WARRANTY : It is understood a third-party 1-year home warranty ___ will, ___ will not be provided through_______________________________ Warranty Company at a cost not to exceed $________ at closing. If pplicable, the cost will be paid at closing by ____ Purchaser  ____ Seller. No additional home warranty will be provided if one is currently being offered by the Seller.

 

This paragraph  shows if a home warranty will be provided for the home and if the purchaser or the seller is going to pay for it.  Normally, a home warranty costs between $400 and $600 just depending on what is covered in the warranty.  There is normally a deductible that comes with covered items but it can be worth it if it saves hundreds of dollars on some repairs. 

A seller will not care if the purchaser gets a home warranty or not as long as they get their same bottom line for selling a house.  In other words, $100,000 and no home warranty is the same as $100,500 and a $500 home warranty.  The sellers net price is the key. Sometimes, sellers will offer a home warranty as a way to entice purchasers but it does not really have much affect in getting a house sold.  The key factors are still pricing and staging.

 

 

Comment balloon 0 commentsGeorge Clements • April 01 2008 03:12PM
Contract Series Paragraph 18
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George Clements ~ Greenville, SC Real Estate Paragraph 18 of the Contract For Sale deals with home warranties and looks something like this: 18. HOME WARRANTY : It is understood a third-party 1-year home warranty ___ will, ___ will not be… more
Contract Series Paragraph 17
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George Clements ~ Greenville, SC Real Estate Paragraph 17 of the Contract For Sale is pretty simple and looks something like this: 17. WATER/WASTE SYSTEMS: Seller represents that the Property is connected to ___ public sewer system ___ septic… more
Contract Series Paragraph 16 H
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George Clements ~ Greenville, SC Real Estate Because of the recent change in the Contract For Sale, we have shifted a little in the letters of the paragraph. I will just start in on the new one in the spot I left off in the old contract. The… more
Contract Series Paragraph 16 Change
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George Clements ~ Greenville, SC Real Estate Well, the Contract For Sale just had a major change while I am in the middle of this series. Paragraph 16 had a clause added to it that I am not sure that I like. It looks something like this: (B)… more
Contract Series Paragraph 16 E
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George Clements ~ Greenville, SC Real Estate Paragraph 16E of the Contract for Sale is titled "OTHER" and looks something like this: (E) OTHER: The property is sold with the following additional stipulations. ____________________ The… more
Contract Series Paragraph 16 D
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George Clements ~ Greenville, SC Real Estate Paragraph 16D deals with what types of repairs the seller will be required to do and looks something like this: (D) REPAIRS: To the extent the Purchaser has requested such repairs, the Seller agrees… more
Contract Series Paragraph 16 C
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George Clements ~ Greenville, SC Real Estate Paragraph 16C of the Contract For Sale deals with termites and moisture and looks something like this: (C) WOOD INFESTATION/MOISTURE REPORT: Purchaser will, at their expense, have the property… more
Contract Series Paragraph 16 B
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George Clements ~ Greenville, SC Real Estate Paragraph 16B of the Contract For Sale deals with Radon and the condition of the property. The paragraph looks something like this: ( B) RADON: Notwithstanding any other provisions in this Contract,… more
Contract Series Paragraph 16
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George Clements ~ Greenville, SC Real Estate Paragrahp 16 of the Contract For Sale deals with the condition of the property and has 7 sections dealing with condition. Section A deals with inspections in general and looks something like this: 16… more
Contract Series Paragraph 15
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George Clements ~ Greenville, SC Real Estate Paragraph 15 of the Contract For Sale is entitled "Disclaimer" and looks something like this: 15. DISCLAIMER: Except in the case of a new home being sold by the builder, the Purchaser… more