ErikOk 10 Report post Posted January 10, 2012 How do you all approach the issue of repairs on a lease option. Is it best to have the seller to agree to pay for a home warranty? If yes, what companies have you had good luck with and at a reasonable price? Do you recommend the seller pay all, or does the seller usually split with the tenant buyer? Should something be written in the l/o agreement? I didn't see any mention of it in the NI contracts. I have heard that in some states, you can't make the buyer do any repairs. Is this right? Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 10, 2012 Erik, our agreements definitely address the issue of maintenance and repairs. For example, in the CA Residential Lease Agreement, review Page 3, Paragraphs 15 and 18. I don't use a home warranty company routinely. However, if a t/b were to request one I would certainly pitch the idea to the homeowner. The big picture is getting the deal done and as long as everyone has the same goal in mind and no one is unreasonable, little things like a home warranty contract won't stand in the way. And you are correct. Different states have different landlord-tenant laws. Check with yours to see what is stated regarding this issue. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted January 10, 2012 I've always used Old REpublic Home Warranty, and we have an account set up with them so they know how to code it since it's a lease purchase. $375 for the year, and normally the buyer will buy it. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted January 10, 2012 Erik, our agreements definitely address the issue of maintenance and repairs. For example, in the CA Residential Lease Agreement, review Page 3, Paragraphs 15 and 18. I don't use a home warranty company routinely. However, if a t/b were to request one I would certainly pitch the idea to the homeowner. The big picture is getting the deal done and as long as everyone has the same goal in mind and no one is unreasonable, little things like a home warranty contract won't stand in the way. And you are correct. Different states have different landlord-tenant laws. Check with yours to see what is stated regarding this issue. Hey Michael, Yeah, I did see that in the CA & also in Lease with Option (obviously skewed in our favor). I had just read about home warranties and was wondering if anyone had put them to use. I agree it seems like a good idea to pitch to the seller so that they don't have a bunch of maintenance issues. I'll definitely check out the state laws like you mentioned. Erik Share this post Link to post Share on other sites
Dmcdonald 0 Report post Posted January 17, 2012 Erik, I'm at the same point as you, where I see a huge benefit of a home warranty for the homeowner. In the end (if you're doing an assignment, not an SLO), all you can really do is explain how it helps them, maybe give them the related marketing materials, and let them make the final decision. I've toyed around with building it into a "package" that we can sell them and include some other services, but that seemed to pushy I felt. -DM Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted January 18, 2012 I've been thinking about this topic as well, and I think from now on I'm going to either require one or have everyone sign a waiver acknowledging that they were offered the option but declined. Cheap insurance and while the agreements are great when everyone sticks up to their end of the agreement, it's probably better to prepare for the worst and hope for the best. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted January 23, 2012 I know, I know...I never call anymore..never write... Anyway, just saw this post and thought I'd bud in. (haven't heard myself talk since....well, earlier today actually) Here's why to use a home warranty. Mr. Seller and Adam dialog.. "So Adam, what you're telling me is that you're going to put someone in the house that has bad credit etc and assign your interest to them/me/Ghandi. What if they trash the place? What if something breaks? I mean, I don't want to be a landlord?" My answer: "Well Mr. Seller, don't make it about "if" per say, make it about "when." Let's just assume they're devil worshiping biker nuts who are going to drive their Harleys into the dining room while sacrificing a goat with a blender. I mean, why not just be prepared with the proper insurance instead of worrying and guessing?" Note: The truth is always in-congruent and leads to the self conclusion of trust by the seller, i.e. use what's against you for you. Then, I tell them about the fire and dwelling policy, making sure the tenant/buyer gets a good renter's policy with at least $3-$5K in liability (in the off chance that it's their drunk goat sacrificing kitchen savvy biker buddies with a lack of "hog riding skills") whom trash the place and start a lawsuit. Then I move into the benefits of a home warranty for the simple fact that it's in the option agreement that they're liable for taking care of the place (for everything un-equitably damageable of course), and that if something goes wrong, they call bob the builder instead of you. AND....not that this is legal advice, which it's not, but it looks better in court if you offered such a thing to your beloved tenant/buyers, even if they paid for it, or you paid for half of it. So, the list of benefits goes on and on.... And then, the holy grail of negotiation sentences to close the deal. "And just to comfort you a little Mr. Seller, I want you to know who these poor, bad credit, socially depressed culinary biker nuts really are. They are YOU in six to nine months from now if you don't move your home!!" Okay, you sign here.....and here.....and...here..and... Deal Closed.Ah....see, that wasn't so bad. I don't post but every two years or so, but at least I haven't lost my sense of humor. BARTENDER!! Corona in a can for all my peeps!!AdamPS I used a Gandhi reference, did you catch it! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 23, 2012 Great googly moogly! An Adam King sighting! Can't be. Next someone will tell me my beloved NY Giants are headed to the Super Bowl. Go Big Blue!! Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted January 23, 2012 Hey MC, Your New York Football Giants are, indeed, headed to the Super Bowl. They're set to scrimmage some team from the Massachusetts area. What's that?! Adam & Jason found in the same thread? That's a server meltdown waiting to happen.Adam's talking about goat sacrifices via a blender, and I know there's gonna be an issue with the horns. I had a "friend" that had the same problem...ya gotta saw them suckers off beforehand. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 23, 2012 Pureed goat and moonshine. Gotta love southern cuisine! Share this post Link to post Share on other sites
speedingpenguin 19 Report post Posted January 23, 2012 In my research on this subject, I'm finding that home warranties are more for protection from expensive repairs such as appliances, heating systems, etc. not damage caused by renters. What I have found though is landlord insurance, which DOES protect against damaged caused to the property, even by malicious renters! I'm waiting for my insurance agent to get back to me so I can find out more, I'd love to offer that sort of protection option to the seller Share this post Link to post Share on other sites
Dmcdonald 0 Report post Posted January 23, 2012 In my research on this subject, I'm finding that home warranties are more for protection from expensive repairs such as appliances, heating systems, etc. not damage caused by renters. What I have found though is landlord insurance, which DOES protect against damaged caused to the property, even by malicious renters! I'm waiting for my insurance agent to get back to me so I can find out more, I'd love to offer that sort of protection option to the seller Keep us up to date on that, I'd love to learn more...never heard of that type of protection. And what a coincidence that Adam should chime in on this thread; I just started going back over my Adam Kind materials! Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted January 24, 2012 Ah yes....Jason and I have SUCH a knack for turning a thread upside down...or, as we like to call it in Texas, tits up! Or is that England? As for the home warranty, you are correctomongo. They are ONLY for certain appliances, electrical and plumbing. (they can differ so do your homework) Insurance for the tenant/buyer sacrificing goats with a blender (after they are "de-horned of course) that's up to what the seller/owner is willing to dish out extra with the insurance guy. Which, is not a bad idea. Call your insurance guy and mention the "goat sacrificing and Harley mishaps and he/she/it will give you some options. Hope that helps,AdamPS Drinking Corona out of a bottle right now. And yes, it's better than out of a can! DOH!!! NO YOU DIDN'T!! He didn't go there did he!?!?!?! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 24, 2012 . . .PS Drinking Corona out of a bottle right now. And yes, it's better than out of a can! DOH!!! NO YOU DIDN'T!! He didn't go there did he!?!?!?! Corona? That's so last year, King. . . Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted January 25, 2012 BBBAAAAHHHHH!!!!!!!!! Wow, so THAT'S what happens when you have sun all year round!!!! Share this post Link to post Share on other sites
