BANK OWNED PROPERTIES QUALIFY FOR 1 YEAR HOME WARRANTY COVERAGE

Banks are becomming more willing to provide Home Warranty protection for their bank owned listings.

Ask your agent to to have the bank provide a 1 year FIDELITY NATIONAL HOME WARRANTY contract. 

FIDELITY NATIONAL HOME WARRANTY will help new buyers with peace of mind after close of escrow.

Please access the web site www.homewarranty.com to discover all of the benefits available for you and your buyers.

Agents an homeowners alike will share in the benefits of a 1 year FIDELITY NATIONAL HOME WARRANTY contract.

Yvonne Nelson                                    

Assistant Vice President

FIDELITY NATIONAL HOME WARRANTY

www.homewarranty.com

October 27, 2008

Hello fellow Real Estate Professionals,

2008 is nearly behind us and 2009 is just around the corner and with the beginning of each year comes new laws and changes that affect us all.

In 10 years with Fidelity National Home Warranty and Disclosure Source NHD Reports I am as amazed as everyone else how many new laws and items we all encounter at the first of each year.

Following you will find some of the items I thought we may all want to be aware of.

Please share with me and all of us if you have some more information to make this list complete.

Yvonne Nelson

Assistant Vice President

Fidelity National Home Warranty and Disclosure Source

800-308-1424 ext 3518

www.homewarranty.com

www.disclosuresource.com

***********************************************************************************

NEW LAWS FOR 2008-09 AFFECTING REALTORS®

With the housing market taking center stage among the nation's concerns, both Congress and California's State Legislature have enacted significant new laws affecting realtors.  Highlights of the new laws are summarized below.  To view the full text of a California legislative bill, go to www.leginfo.ca.gov.

Emergency Economic Stabilization Act May Help Homeowners: Enacted on October 3, 2008, this historic federal legislation earmarks $700 billion for the Treasury Secretary to purchase troubled assets from financial institutions.  The Secretary and other federal agencies are also charged with the task of mitigating foreclosures for mortgages and mortgage-back securities and encouraging loan modifications.  Furthermore, this law strengthens the FHA-insured refinance loans for troubled mortgages under the HOPE for Homeowners program, including authority for the program's board of directors to increase the maximum loan amount above 90% of the appraised value.  This bill also extends the tax exemption for debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 from December 31, 2009 to December 31, 2012.  Source: H.R. 1424, available at http://www.govtrack.us/congress/bill.xpd?bill=h110-1424.

DRE License Number Must Be on First-Contact Materials: Effective July 1, 2009, California's real estate agents must disclose their Department of Real Estate (DRE) license numbers on all solicitation materials intended to be the first point of contact with consumers.  Examples include business cards, stationery, advertising flyers, and other materials designed to solicit the creation of a professional relationship between a licensee and consumer.  Excluded from the law, however, are advertisements in print or electronic media, "for sale" signs, and classified rental ads reciting the address or phone number of the rental property.  The DRE may adopt regulations to clarify the first-contact materials covered under this new requirement.  This bill also requires agents' license numbers on real property purchase agreements, which C.A.R. has already incorporated into our standard form purchase agreements.    Senate Bill 1461.

Debt Relief Income Exempt from State Income Tax: Starting September 25, 2008, the federal income tax exemption for debt forgiven on a home loan now applies to state income taxes to a limited extent.  Federal law provides a tax exemption for debt forgiveness on a loan incurred for acquiring, constructing, or substantially improving a principal residence up to $2 million if the debt is discharged from 2007 through 2012.  Under the new California law, the maximum qualifying debt is only $800,000, not $2 million, and the maximum exclusion is $250,000.  Moreover, the California law only applies to a debt discharged in 2007 or 2008.  Senate Bill 1055.

DRE Can Discipline Licensee for Inflating BPOs: Beginning on January 1, 2009,the DRE can suspend or revoke a real estate license if the licensee generates an inaccurate opinion of value (Broker Price Opinion or BPO) for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement.  This new rule aims to preclude a self-serving agent from inflating a BPO in hopes that the lender will reject the short sale, foreclose on the property, and give the BPO agent an REO listing.  Senate Bill 1737.

DRE Can Suspend Licensee for Acting Against Public Interest or Committing an Offense Involving Dishonesty: Commencing January 1, 2009, the DRE can suspend a license up to 36 months: (1) if suspension is in the public interest and the licensee knew or should have known that violating a DRE rule would cause material damage to the public; or (2) for committing any offense involving dishonesty, fraud, or deceit, or an offense reasonably related to the qualifications of a licensee, whether such offense was adjudicated by a criminal conviction, plea of nolo contendere, final judgment in a civil action, or administrative agency judgment.  A person suspended under this law is prohibited from engaging in any business activity related to real estate in a real estate office or certain related fields.  Senate Bill 1737.

Duty to Disclose Agent is Arranging Financing: Starting January 1, 2009, a listing or selling agent who undertakes to arrange financing for the sale, lease or exchange of real property (or an agent arranging financing who undertakes to act as the listing or selling agent) must, within 24 hours, provide a written disclosure of that role and any related loan transactions to all parties to the sale, lease, or exchange.  Senate Bill 1737.

Pool Drains Must Be Properly Covered: As a red alert for apartment and condo managers, all U.S. "public pools and spas" as defined must be equipped with anti-entrapment drain covers by December 19, 2008.  The suction from pool and spa drains can be so strong as to entrap children, and cause injuries or drowning deaths.  Under the new federal Virginia Graeme Baker Pool and Spa Safety Act, a "public pool or spa" includes pools and spas open to the public, as well as those open exclusively to residents of multi-unit apartment buildings or multi-family residential areas (such as condominiums).  The new law requires, among other things, that drain covers for pools and spas conform to the performance standard of ASME/ANSI A112.19.8-2007 and that single main drains be equipped with anti-entrapment devices as specified.  For more information, visit the Web site of the U.S. Consumer Product Safety Commission (CPSC) at http://www.cpsc.gov/whatsnew.html, which includes a list of manufacturers, given the uncertainty as to whether the supply of compliant drain covers is adequate.  Source: S. 1771, available at http://www.govtrack.us/congress/bill.xpd?bill=s110-1771.

Tenant Victimized by Domestic Violence Can Terminate Tenancy: Beginning on September 27, 2008, a tenant can terminate a tenancy upon giving a 30-day written notice to terminate, if the notice also informs the landlord that the tenant or a household member has been a victim of domestic violence, sexual assault, or stalking as defined.  The tenant must attach to the notice a copy of a temporary restraining order, emergency protective order, or police report issued within the last 60 days.  The tenant is also entitled to a pro-ration of the last month's rent if, within those last 30 days, the tenant vacates and the landlord re-rents the premises to a new tenant.  This law will sunset on January 1, 2012.  Assembly Bill 2052.

Landlords and REO Lenders Must Take Charge of Abandoned Animals: Effective January 1, 2009, any person or private entity with whom a live animal has been "involuntarily deposited" must take charge of it, if able to do so, and immediately notify animal control officials to retrieve the animal.  An "involuntary deposit" includes the abandonment of a live animal on a property that has been vacated upon, or immediately preceding, the termination of a lease or foreclosure of the property.  The animal control officers who respond can secure a lien to recover the rescue cost, but this law imposes no other liability upon a depositary who complies with these rules.  Assembly Bill 2949.

Smoke Detector and Water Heater Bracing for Manufactured Homes: Starting January 1, 2009, all used mobile homes and manufactured homes that are sold must have an operable smoke alarm in each sleeping room (whereas prior law only required one smoke detector per manufactured home).  If the manufactured home was manufactured on or after September 16, 2002, the smoke alarm must comply with the federal Manufactured Housing Construction and Safety Standards Act.  If the manufactured home was manufactured before September 16, 2002, the smoke alarm (which can be battery-powered) must be installed in terms of its listing and installation requirements.  A seller satisfies the above requirements by signing a declaration, within 45 days before transfer of title, that the smoke alarms are properly installed and operable.  For a manufactured home manufactured before September 16, 2002, the seller must provide the buyer with the manufacturer's information on the operation, testing, and proper maintenance of the smoke alarms.  An agent is not liable for any error, inaccuracy, or omission in any required disclosures that the agent did not know was false.  The California Department of Housing and Community Development (HCD) may establish new rules as needed to clarify or implement the smoke alarm requirements.  This law also requires all replacement fuel-gas-burning water heaters in existing mobile homes and manufactured homes that are offered for sale or lease to be seismically braced, anchored or strapped in accordance with rules and standards to be established by the HCD by July 1, 2009.  Assembly Bill 2050.

Title Company's Promotional Items and Marketing Reps Regulated: Effective January 1, 2009, a title company is prohibited from, directly or indirectly, paying for someone else's ads in newspapers, newsletters, magazines, or other publications, or paying for someone else's food, beverage, or entertainment expenses.  A title company may, however, give out $10 promotional items with a permanently-affixed company logo (but not gift certificates or gift card) or provide education and educational materials related to title insurance (but not continuing education credits).  This law also requires a title marketing representative who solicits or sells title insurance to have a valid certificate of registration from the Department of Insurance.  A certificate of registration is not required if a person's primary duty is to issue a title policy or perform escrow services.  Senate Bill 133.

No Text Messaging While Driving: Commencing January 1, 2009, a person driving a motor vehicle is prohibited from writing, sending, or reading a text message, instant message, or e-mail from an electronic wireless communication device.  However, a person may read, select, or enter a name or phone number in a wireless device to make or receive a phone call.  A violation of this law is an infraction punishable by a base fine of $20 for the first offense and $50 for each subsequent offense.  Senate Bill 1613.

Other Significant Laws: Some of the other new laws of interest to realtors are, without limitation, amendments to the 3 1/3 percent California withholding requirement for installment sales and non-California partnerships and corporations (Assembly Bill 3078); bonding, insurance, and other requirements for 1031 exchange facilitators (Senate Bill 1007); liquidated damages rules for high-rise condominiums over $1 million (Assembly Bill 2020); and an increase in the fine for acting as a licensee without a license from $10,000 to $20,000 (Senate Bill 1448).
More info: http://www.car.org/

**********************************************************************************

Yvonne Nelson                                                                                                              

Assistant Vice President

FIDELITY NATIONAL HOME WARRANTY & DISCLOSURE SOURCE

www.homewarranty.com

www.disclosuresource.com

WWW.DISCLOSURE SOURCE.COM

October 15, 2008

Part of my job and due diligence as Assistant Vice President and Senior Account Manager for 10 years with Fidelity National Home Warranty and Disclosure Source NHD Reports is to bring my clients and real estate professionals newsworthy industry related facts, news, information, market trends and value.

Sharing of information gives us all the ability to help our past, present and future clients make intelligent and knowledgable real estate decisions.

Check my post often. As I get "Hot off the Press" news of value I will pass it along to my fellow real estate professionals.  Lets all stay on top of our game and well informed.  I would love to read your information also.

Yvonne Nelson

Assistant Vice President

Fidelity National Home Warranty and Disclosure Source

800-308-1424 ext 3518

www.homewarranty.com

www.disclosuresource.com

*************************************************************************

On October 3, 2008, President Bush signed into law the "Emergency Economic Stabilization Act of 2008." This bill extended tax credits for energy efficient home improvements (windows, doors, roofs, insulation, HVAC, and water heaters). Tax credits for these residential products, which had expired at the end of 2007, will now be available for improvements made during 2009. However, improvements made during 2008 are not eligible for a tax credit.

The products that are covered by the tax credit in 2009 include:

• insulation
• windows (including storm windows)
• skylights
• doors (including patio & sliding glass)
• metal roofs
• asphalt roofs
• Central air conditioners
• Air source heat pumps
• Geo-thermal heat pumps
• Gas, Oil, or Propane Furnace or Hot Water Boiler
• Advanced Main Air Circulating Fans
• Gas, Oil or Propane Water Heaters
• Electric Heat Pump Water Heaters
• Solar Water Heaters
• Photovoltaic Systems (solar panels)
• Fuel Cells

Products not covered by the tax credit included:

• refrigerators
• dishwashers
• clothes washers
• Room air conditioners
• Ceiling fans
• Programmable thermostats

For more information on products covered by the tax credit, visit www.energystar.gov/taxcredits

Yvonne Nelson                                                                                    

Assistant Vice President

Fidelity National Home Warranty and Disclosure Source

800-308-1424 ext 3518

www.homewarranty.com

www.disclosuresource.com

BANK OWNED PROPERTIES QUALIFY FOR 1 YEAR HOME WARRANTY COVERAGE

Banks are becomming more willing to provide Home Warranty protection for their bank owned listings.

Ask your agent to to have the bank provide a 1 year FIDELITY NATIONAL HOME WARRANTY contract. 

FIDELITY NATIONAL HOME WARRANTY will help new buyers with peace of mind after close of escrow.

Please access the web site www.homewarranty.com to discover all of the benefits available for your home.

Agents an homeowners alike will share in the benefits of a 1 year FIDELITY NATIONAL HOME WARRANTY contract.

Yvonne Nelson                                    

Assistant Vice President

FIDELITY NATIONAL HOME WARRANTY

www.homewarranty.com

Fidelity National Home Warranty and Disclosure Source Natural Hazard Reports

www.homewarranty.com  www.disclosuresource.com

Don't let any of your transactions close without both!

            -------------------------------------------------------------------------------------------------------

New Form Points Out What's Required, What Isn't In Foreclosure Properties
by Bob Hunt

It is yet another sign of the times that the California Association of Realtors (CAR) has released a form entitled "REO Advisory". REO stands for "real estate owned" and is the common term for property that a lender has acquired through foreclosure. Actually, CAR has released two forms - the second specifies "REO Advisory (Listing)" -- but the two are identical as to their contents.

The primary purpose of the form is to advise both buyers and agents regarding both the exemptions and the obligations that California law provides for sellers who have acquired property either through foreclosure or by accepting a deed in lieu of foreclosure. The form also addresses the requirements imposed upon agents involved in the sale of such properties.

When an entity -- a corporation or an individual -- acquires a residential property of less than four units through foreclosure, California law exempts that entity, as a seller, from providing a number of disclosures that are normally required in residential sales. Most notably, the seller is not required to provide a Transfer Disclosure Statement (TDS), the form that is mandated by the state in almost all residential sales. Also, an REO seller is not required to provide a Mello-Roos district lien disclosure, or the commonly required Natural Hazard Disclosure Statement.

On the other hand, and contrary to the belief of many REO sellers, there are a number of standard requirements from which the REO seller is not exempt. In particular, as the REO Advisory states, "Seller is not exempt from common law and statutory duties concerning fraud and deceit, even though the specific TDS Form is not required to be completed. Seller remains obligated to disclose known material facts affecting the value and desirability of the Property."

For example, suppose an REO seller has a property that he has never seen and that the property has serious settling problems and significant cracks in the slab. If the seller doesn't know about these problems, he has no obligation either to find out about them or to disclose them. Now also suppose that someone attempts to purchase the property and that, during an initial inspection period, they discover the problems through the services of a home inspector.

The buyer submits the inspection report to the seller and asks for a price discount. Of course the seller doesn't have to give the discount and the deal may just come undone. But now the REO seller has actual knowledge of the problem. He would be obligated to disclose that to any subsequent buyer.

In the sale of REO properties, agents have the same inspection and disclosure duties that they have in any other sale. Both listing agent and selling agent must do a "reasonably competent and diligent visual inspection of the accessible areas of the Property and disclose to Buyer material facts revealed by such an inspection ... ."

Finally, the REO Advisory contains a section labeled "Other Considerations". There, it is noted that there may be lender-prepared "addenda, amendments, or counter-offers to a Buyer and Seller Agreement, or a Lender-Prepared contract that may conflict with, contradict, or be inconsistent with terms in Buyer's offer." Indeed, it is quite likely that a prospective buyer of REO property will receive such lender-prepared documents. Moreover, the advisory raises the possibility that some of the terms in such documents may not be permissible under California law.

What is a buyer to do if, as is likely, he receives such documents from the lender, documents that look nothing like a standard California real estate contract? Don't look to the brokers, the advisory advises; rather, "seek legal counsel to discuss the applicability and interpretation of any lender-prepared documents prior to signing such documents."       

Copyright © 2008 Realty Times.

Yvonne Nelson                                      

FIDELITY NATIONAL HOME WARRANTY

DISCLOSURE SOURCE NHD Reports

www.homewarranty.com

www.disclosuresource.com

Thank you Jason.

I am an AR "NEWBIE" and this is all very helpful and fun.

I am trying hard, but want to be much better.

I am joining the AR Newbie group and plan to be active in taking in as many of the tips and tools as I can.

Thank You all,

Yvonne Nelson

FIDELITY NATIONAL HOME WARRANTY

800-308-1424 EXT 3518

www.homewarranty.com

Seven MLSs create the Largest MLS Data Share in Northern California

 New data sharing arrangement expands listing info to 70,000 agents in 21 Northern California Counties

Northern Calif. (September 15, 2008) - The three MLSs in the San Francisco East Bay Area today announced they are participating with major MLSs in Northern California in a program to exchange MLS data. The Bay East Association of REALTORS® MLS, the Contra Costa Association of REALTORS® MLS and East Bay Regional Data, Inc will be sharing MLS listing data with MLSListings Inc and with Quattro (an existing data sharing initiative that includes San Francisco Association of REALTORS® [SFAR], Bay Area Real Estate Information Services, Inc. [BAREIS MLS®] and MetroList Services, Inc. [Metrolist®]).  Together, these seven MLSs represent 70,000 real estate brokers and agents from 21 counties in Northern California.

The cooperative agreement takes advantage of the unique character and rich data found in each participating MLS.  Real estate practitioners throughout this large area will be able to access any one of the MLS systems, enabling them to find property information across multiple market areas regardless of geographic boundaries. In addition to full reciprocal MLS access for users, the agreement allows each participating MLS to maintain separate databases that aggregate the data from all seven MLSs. Users who prefer to see all of the data in a single location can use one of the aggregated databases. They will no longer have to pay additional fees to access other MLSs. Brokers who maintain proprietary software systems for use by their agents will also benefit from the new data share. They will be able to download data from all of participating MLS's databases in a single data stream instead of downloading data from each MLS individually.

 "Together with our neighboring MLSs, we look forward to giving agents and brokers access to high quality property databases at no extra cost. This data share will enable real estate professionals to provide more comprehensive and accurate information to their clients in the home buying and selling process" said Melrose Forde, President of the Bay East Association of REALTORS®. "

CCAR President, Moses Guillory noted, "The expanded access this agreement allows for is great news for Brokers/Agents and consumers alike.  By cooperating, we are expanding the property search experience, yet at the same time, retaining the unique flavor that characterizes each of our distinct market areas and the consumers they represent." 

"We are thrilled to be part of such an important data sharing arrangement.  EBRDI and the other MLSs involved in this initiative can now provide the very best listing information in a larger geographic area while still maintaining the highest level of superior local service, training and market knowledge which is paramount to our member's local success, "said Becky Tobin, President and CEO of EBRDI. 

Brokers and agents will continue to obtain locally delivered services as they do now from their local MLS or MLS of their choice.  The data aggregation and reciprocal access project is expected to be complete sometime in the first quarter of 2009.                         

About Quattro

Through an information-sharing agreement, San Francisco Association of Realtors, Bay Area Real Estate Information Services, Inc. and MetroList Services, Inc. provide live, real-time reciprocal MLS access to each other's systems. In addition, data is merged into a common data set in Quattro. Authorized individuals have the ability to directly access Quattro for a single, combined data feed offering operational efficiencies not possible before. Quattro provides real estate professionals with access to property listings in 15 California counties (El Dorado, Napa, Solano, Lake, Placer, Sonoma, Marin, Sacramento, Stanislaus, Mendocino, San Francisco, Yolo, West Merced, San Joaquin and North San Mateo) and more than 18 thousand square miles serving a population of 5.6 million people.

About Bay East Association of REALTORS®

Since 1947, the Bay East Association of REALTORS® has been providing MLS services to real estate professionals in Southern Alameda County. Agents, brokers and appraisers who belong to the Bay East MLS have access to comprehensive property information for homes in Castro Valley, San Lorenzo, San Leandro, Hayward, Newark, Union City, Fremont, Sunol, Pleasanton, Dublin and Livermore. Serving over 6,400 MLS users, the Bay East Association of REALTORS®  offers, education programs, professional development, and emerging technologies that enable agents and brokers to provide quality real estate service.

About Contra Costa Association of REALTORS®

The Contra Costa Association of REALTORS®, located in Central Contra Costa County, has been serving its members since 1921. The central county includes the communities of Alamo, Blackhawk, Clayton, Clyde, Concord, Danville, Diablo, Lafayette, Martinez, Moraga, Orinda, Pacheco, Pleasant Hill, Rossmoor, San Ramon and Walnut Creek. The Association is dedicated to providing the most innovative and highest quality services, programs, and products to positively impact the success of its 4,000 members who provide real estate brokerage services to clients throughout the East Bay and beyond. 

About East Bay Regional Data, Inc.

East Bay Regional Data is a California corporation owned by the Alameda Association of REALTORS®, the Berkeley Association of REALTORS®, the Delta Association of REALTORS®, the Oakland Association of REALTORS® and the West Contra Costa Association of REALTORS®. East Bay Regional Data resulted from the desire of professional real estate associations in Alameda and Contra Costa counties to provide their members with access to a broader market for listing and selling real estate by providing a single, centralized MLS system. East Bay Regional Data was incorporated in September 1991 and began to provide services to MLS subscriber members in April 1992. Through East Bay Regional Data, licensed real estate brokers, agents and appraisers receive on-line access to comprehensive listing information about current, pending and off market properties listed by other EBRDI Participants.

About MLSListings Inc

MLSListings Inc formally launched in 2007 after considerable effort to consolidate the region's MLS systems. MLSListings is designed to more effectively meet the current and future MLS needs of the region's real estate professionals. Specifically, MLSListings provides a smart and simple solution to meet the challenges of conducting business across a large geographical area in which multiple MLS organizations with disparate rules, fee structures, and procedures inhibit the manner in which brokers and agents can effectively meet the needs of homebuyers. MLSListings formally acquired RE InfoLink and Central Valley MLS in 2007 and continues to work with neighboring MLS providers to enhance service to its customers. MLSListings represents nearly 20,000 MLS subscribers. MLSListings is governed by the brokerage community, and owned by Santa Clara, Santa Cruz, Silicon Valley, San Mateo, Monterey, Watsonville, San Benito and Central Valley associations of REALTORS®.

About Bay Area Real Estate Information Services, Inc. (BAREIS MLS®)

Bay Area Real Estate Information Services, Inc. was created on October 22, 1997. The organizations that founded BAREIS are the Marin Association of REALTORS®, Napa Association of REALTORS®, Northern Solano Association of REALTORS®, Solano Association of REALTORS® and the Sonoma County Multiple Listing Service. The Mendocino County MLS joined the effort in 2001, and the Coastal Co-op MLS in 2005. BAREIS MLS® now serves approximately 10,200 members in five counties, including Marin, Mendocino, Napa, Solano, and Sonoma.

About MetroList Services, Inc. (MetroList®)

Headquartered in Sacramento, MetroList Services, Inc. is the largest multiple listing service in Northern California.  Formed in 1985, Metrolist is 50 percent owned by the California Real Estate Brokers, Inc. and by the Sacramento Association of REALTORS®, Placer County Association of REALTORS®, El Dorado County Association of REALTORS®, Lodi Association of REALTORS®, and the Yolo County Association of REALTORS®.  MetroList acts as a seamless real estate information network serving more than 20,000 real estate professionals in seven counties, including El Dorado, Merced, Placer, Sacramento, San Joaquin, Stanislaus and Yolo.

About San Francisco Association of REALTORS®   (SFAR)      

The San Francisco Association of REALTORS® was founded in 1905. It antedates both the National Association of REALTORS® and the California Association of REALTORS® and was active in the formation of both of these organizations. SFAR provides sophisticated business-related products and services to its more than 4,500 REALTOR® members in San Francisco and North San Mateo County.

Yvonne Nelson                                                              

Assistant Vice President

FIDELITY NATIONAL HOME WARRANTY              

800-308-1424 ext 3518

www.homewarranty.com

Home Warranties and Home Insurance - the difference

 Home warranties protect homeowners form repair costs that aren't covered by home insurance.  Home warranties typically cover such items as plumbing, heating, electrical, and major appliances.

 Home warranties are service contracts, which typically last one year and cover the repair or replacement of homes major systems and appliances that break down due to normal usage.  Home warranties don't discriminate based on age of the home or the age of the systems or appliances.

 However home warranties do not overlap or replace homeowners insurance. An easy way to distinguish the difference between a home warranty and homeowners insurance is the "cause and effect relationship."

 For example, if your hot water heater burst and destroyed a wall in your home, the home warranty would repair the water heater and your homeowners insurance would pay to fix the wall.

 Or, if your refrigerator stopped working while you were on vacation and upon your return you had food spoilage, or floor damage due to leakage, your homeowners insurance would pay to for the damage to the floor and the home warranty would pay for repair or replacement of the refrigerator.

 Home warranties don't cover secondary damage. So, if your toilet malfunctions and leaks all over the floor, the warranty covers the broken toilet but not the damaged floor.

  Home warranty contracts vary by state so agents and buyers should read the home warranty contracts available in your state and be aware of the legal terms and conditions.

 The Fidelity National Home Warranty contract can be viewed on line in English and Spanish at www.homewarranty.com Each state available for contracts is noted and more state will be insured in the future.

Yvonne Nelson, Assistant Vice President

FIDELITY NATIONAL HOME WARRANTY                                           

800-308-1424 EXT 3518

www.homewarranty.com 

 Foreclosed Homes and Home Warranty

The bank foreclosures have led to an increasing rate of home sales activity. A large number of properties are left vacant due to the problem of foreclosed homes. This problem has created a good real estate market for the first time buyers as they can purchase a home at a price that was something unbelievable for them a few years back. However, the buyers are needed to ask for both home inspection and home warranty. As put by David Goodwin, treasurer of the Home Warranty Association of California (HWAC), a home warranty is provided by the seller often in a transaction that involves traditional home selling activity.

It has been found that about 90 percent of the traditional home sale transaction in California included giving of a home warranty by the seller. In this foreclosure market, the seller of homes and properties are the banks. It is by all probability that they will not be willing to provide a home warranty. Moreover, the bank is not well aware of the condition of the home as the occupant was someone different. Hence, the bank will be unable to make the buyer know about the condition of the home. Therefore, it becomes very important for the buyer to ask for inspection as well as home warranty.

In case of a foreclosed home, a buyer must not expect that the home warranty will also include on items that were found during the inspection time. A home inspection is always a necessity as that will give a clear idea on whether everything is in proper condition or not. The home warranty is an added protection that protects a homebuyer against unnecessary expenditures like repair costs within the first year of the possession of home. A buyer should be well aware of the various problems involved in buying a home when it is a market of foreclosure. If the problems are not identified at the first stage, it may cost the buyer heavily later on.

The Home Warranty Association of California happens to be an organization for home warranty companies, which represents about 95 percent of the various real estate contracts that are sold in California. A home warranty provides warranty for the main operating systems as well as appliances of the home against any breakdown within one year after the deal is closed. To make home buying a fruitful business, one must ask for home warranty to have a great future.

***Please Be Advised

Read carefully the Home Warranty contracts available for your state.

I have been advised by an agent in Virginia that she has knowledge that some Home Warranty providers do not cover foreclosed property.

Fidelity National Home Warranty does cover - REO, Short Sale, Investment and traditional Real Estate transactions.

Yvonne Nelson                                                                    

Assistant Vice President

FIDELITY NATIONAL HOME WARRANTY

800-308-1424 ext 3518

www.homewarranty.com