Seller's Guide

The seller may purchase a home warranty plan prior to sale to protect against repairs needed during the listing period, and the buyer may be able to assume the plan at the close of escrow. Or the seller may offer to purchase a home warranty plan for the buyer. Offering a home warranty plan may provide these benefits.

• Increase the marketability of your home by reassuring potential buyers.
• Help sell your home faster and at a higher price.
• Ward off potential disputes after the sale for repair and/or replacement of covered items.

Most home warranty plans can be paid for at the close of escrow. A copy of the invoice is presented to the escrow company.

The appraiser will make an appointment to see your home and will take about 30 minutes to an hour to look over the property. He or she will measure your home, draw a representative floor plan, take photographs inside and out, and review the property's condition, specific improvements, and amenities.

The appraiser will provide a typed appraisal report to the buyer's lender within a few days after visiting your property. You will be notified if the lender requires repairs before they will lend on your home. If repairs are required, the appraiser will have to return to review the repairs and a re-inspection fee may be charged.

The buyer deposits the funds to an escrow holder. The escrow holder, acting as a neutral third party, verifies a title insurance policy can be issued pursuant to the terms of the contract. Then, the escrow holder arranges for the documents transferring title to the property to the buyer to be recorded, for the issuance of the title policy, pays any liens and all the costs associated with the sale that are chargeable to the buyer and seller, and disburses the sales proceeds to the seller. If the buyer gets a new loan, then the lender's money is deposited into the escrow and the lender's security documents are recorded at the same time as the deed.