Expert: Diann Tonnesen - 10/17/2006

Question
Diann

We live in Pennsylvania. My wife and I are thinking of selling our house. A couple we know highly reccomemded we get a home warranty for one year. They said that according to a Federal Law, sellers are liable for anything that goes wrong with the house for up to one year. Is this correct? If so, can we please have a copy of the law that states this. Thank You.

JIm

Answer
Hi Jim,

There is no Federal law that says a seller is liable for something that goes wrong up to one year after the sale of a home. Usually there are state laws, however, and special forms to fill out that require a seller to make a full disclosure of anything they know of that is wrong with the home or could reasonably expected to know. Those forms will outline the seller's responsibilities and any time frames that are applicable.

However, I do STRONGLY recommend to all my sellers that they purchase a one year home warranty for the buyer - it just makes things less complicated in case something does go wrong after the sale, and is usually much cheaper than fighting it out in court. Just factor the cost of the warranty into your bottom line as you do your other closing costs when selling.

Most buyers will also have a home inspection done before they purchase. I absolutely insist all my buyers get one and that they sign off that they are satisfied with the condition of the home. A good home inspector will usually identify any major problems that are present, and at that point the buyer and seller can negotiate who will be responsible for making repairs to correct any defects. This is also a GREAT protection for you as a seller, as the buyer cannot later come back and say he was not informed.

Hope this information helps? Do you have an agent to represent you already? You should definitely interview several to find one you are comfortable with, and they should be able to help you through the pitfalls of selling on all of the above items. Each state is different in the disclosures it requires, and you want to make sure you have an expert from YOUR area helping you. If you would like some suggestions on agents, we can find some top local agents through our referral system for you to interview. Just let me know and we'll get right on it.

Good luck! :)