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?
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.
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