Thread: Is this Fraud?

Originally Posted by Easy123

I accepted a very low offer on my home. After the home inspection the Buyers want me to make several improvements at my expense. I said No since I had come way down on my price. The Realtor was so determined to make the sale go through (dual agent) that she wants me to agree to have a home warranty put on the house (at her expense) and then wait 2 week and submit the repairs through the warranty company. That sure seemed like we would be scamming the warranty company and I told the Realtor I would have NO part of that scheme! If fact, it was the final straw that is making me uncomfortable with this agent and I asked to be represented by another agent. The new agent from the same company backed up the plan to have a home warranty put on the house AFTER the home inspection and then submit repair.

Are you kidding me? Are Home warranty companies really that stupid??? I would think the warranty company would ask me to sign something that says I have no knowledge of any existing repairs. Am I right? Would this be fraud if I went along with their plan?

Only a lawyer is allowed to answer this question for you. I suggest that you check out the legal forum and post your question there. You can find the link on the right hand side of this forum inbetween two sets of google ads. I have been told that what you explain is a no no to be involved in. Play it safe when in doubt stay above board.

Sounds kinda fishy. It would take more than two weeks for normal wear and tear. If you get a bad wrap with home warranty companies you might not be able to use them in the future for your personal use.

Originally Posted by jamesww

I suggest that you check out the legal forum and post your question there.

Well I am new here and didn't know where to post my question so I put it in 2 areas and didn't know that was a no no. Well too bad the deleted the other one but I guess it doesn't matter, I am no t going along with their scheme. I was just hoping I could confirm whether it truly wasn't legit where the other Realtor backed the first one up.

Thanks for your feedback!

Originally Posted by Easy123

Well I am new here and didn't know where to post my question so I put it in 2 areas and didn't know that was a no no. Well too bad the deleted the other one but I guess it doesn't matter, I am no t going along with their scheme. I was just hoping I could confirm whether it truly wasn't legit where the other Realtor backed the first one up.

Thanks for your feedback!

No problem you did nothing wrong. I am just trying to help out forum members by making sure that they dont get charged with practicing law without a license. This can be really damaging. Many states consider just giving your opinion practicing law. I hope things work out for you. I am sorry if my post sounded as though I was getting on your case.

It is better to discuss with a lawyer..

Hello Easy123,

I flip about 4-5 houses per year and whenever a Realtor comes in with an offer, the home warranty clause in the contract is the very first thing I scratch off.
I just tell them, if your client wants a warranty you have 2 choices:
1) They themselves pay for it, or
2) Tell them to buy a new house, not resale

It works 100% of the time.
And the keyword here is what you put on your post. The price is adjusted accordingly. You said the the offer was very low to begin with. So there is no reason for you to pay for the warranty.

One more thing. Make your that your contract specifies that the sale of the house is "As Is".

Hope this helps.

zatanaz

I'm not a lawyer but it sounds like fraud to me. When plans are made to deceive for monetary benefit, it is fraud.

I am going to shed a little bit of a different light on this. Many home warranty companies will allow an agent to put their home warranty on their listings while a property is on the market. This is actually usually a free service too. What it is mainly for is so if any issue occur with the property while the home is on the market, the seller has the available home warranty to use. Obviously they require these things to happen "during" the home being listed, not prior. But it is a great service that many people are not even aware of. All you pay for is a service call.

If the inspection report had the needed repair listed...the Home Warranty company more than likely will decline the repair since it was a pre-existing condition ....what usually happens is the homeowner hands over the deductable...then the tech declines the repair.