Asked in Real Estate Law for California

Q: Selling property in LA County. Broker says their E&O carrier makes it mandatory for us to purchase Home Warranty.

We are selling our home in LA County, closing August 12th. Our Realtors Brokerage informed us that their E&O carrier makes it mandatory for us to provide a Home Warranty (think Homeshield) for the buyer.

I'm a realtor (in MO) and have never heard of this being a mandatory item. It was not detailed on the Sales agreement and only made known to us within 8 days of clothing.

Can and E&O demand this of the sellers as a must-purchase part of their agreement to provide E&O coverage to the brokerage?

Related Topics:
1 Lawyer Answer
Maurice Mandel II
Maurice Mandel II
  • Newport Beach, CA
  • Licensed in California

A: Apparently there is a lot of this occurring right now because someone else posted this exact same question here a couple of days ago, or was that you? The answer is: This is not a legal requirement. The solution I offered was for you to tell your broker that his company can pay for the insurance out of the commission, because this is not a legal requirement. Or are you talking about Title Insurance, which is something different but as a Realtor in MO you would know that. Oh, the last post said that the Broker's LEGAL Dept. was requiring it, YOU claim it is there E&O Carrier that requires it. UNHEARD OF for an insurance company to require the client of their insured to purchase such insurance.

Justia disclaimers below, incorporated herein.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.