Legal Question in Real Estate Law in Texas

Cancellation of Home Protection Policy and funds disbursement

We purchased a home in which the sellers provided $370.00 towards the purchase of a home protection policy which cost 399.00. Once we closed on the home, and read the terms and complaints against the company, we felt it was a waste and opted to cancel. Upon cancellation, the title company only sent 29.00 to us stating that the remainder was paid on behalf of us by the seller and we were not entitled to a refund. I am in disagreement since I became the holder and owner of the policy upon closing, regardless of who paid, and have a right to cancel and receive a refund should I choose. Therefore, I need to find out whether I am correct or not and entitled to a refund.


Asked on 12/07/07, 10:43 am

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Cancellation of Home Protection Policy and funds disbursement

It is my opinion that the title company is right. The $370 was not a "credit to you at closing" it was for "purchase of a warranty." Since you chose to opt out of the warranty, the seller is the one who benefits from it. Wish I had better news.

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Answered on 12/08/07, 9:31 am


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