Legal Question in Real Estate Law in Indiana

real estate

We closed on a home on September 15th.

We had heavy rains in our area, and knew there was water in crawl space, where furnace was located. We didn't know how much water.

At closing, our real estate agent said, if there were any problems, our home warranty would cover repairs.

The water destroyed our furnace. We called our home warranty office, and they sent a heating and cooling contractor.

He said the furnace needed to be replaced. We paid $65.00 for this.

We received a call from home warranty office the next morning. They said they don't cover anything damaged by floods. Only things from normal wear and tear.

We are broke after putting money in for down payment, closing costs, utility transfers.

And we haven't stayed one night there.

Any help you can offer is greatly appreciated. Thanks.


Asked on 10/03/08, 11:58 am

1 Answer from Attorneys

Re: real estate

I suggest that you contact your seller and anyone else who witnessed what your agent said concerning the warranty. Obtain a written and signed statement. I would then send a letter to the agent and his or her managing broker indicating what the agent said and that the warranty does nto cover the repairs and ask them to pay for the furnace. If the warranty was replacement value, then your claim should be for the cost of the new one. If pro rata, then you need to find out the age of the furnace, what its expected life was, and have the

agent pay a share. For example, if the furnace is

10 years old and should have lasted 20 years, then ask for 1/2. Good luck

Read more
Answered on 10/03/08, 3:20 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Indiana