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 CONTACT: Art Ansoorian (8l8) 88l-ll83 FOR IMMEDIATE RELEASE HOT CALIFORNIA HOUSING MARKET, ‘COOL’ WARRANTY SYSTEM BENEFIT CONSUMERS BURBANK, CA, Sept. 15, 1998 -- California’s sizzling housing market is underscoring that the state’s home warranty system has become a “national model” largely by protecting consumers and by keeping real estate agents “at arm’s length” in home system disputes during the first year following a sale, according to the Home Warranty Association of California (HWAC). Noting that home warranty usage in California continues at a rate of eight of every l0 existing home sales, having grown three-fold since l985, HWAC President Ray Adams said: “The California method of home warranties is a national model on the strength of the exchange of value it creates between the real estate agent and home warranty company. “A specific purpose of the Home Warranty Act of l978 in California was to remedy after-sale problems occurring with existing home sale transactions. In this way, the real estate agent no longer was the primary focus of disputes involving home system failures during the first l2 months of the home purchase.” Adams went on to say that HWAC and the California Association of Realtors have maintained positive rapport during and since the establishment of the home warranty act. By working together, the two associations created a financially safe environment that ultimately benefits the consumer. “In fact, home warranty companies do relieve agents/brokers from potential liability, while protecting the consumer. Importantly, the success of this program has been the result of the agent’s ability to maintain an arm’s length relationship in a transaction,” Adams declared. He pointed out that the California method of home warranty usage has been validated by the fact that the state far outpaces the nation by over 50 percent. “In an increasingly litigious society, sellers, and even more frequently, the real estate agent, can be the target of buyers experiencing difficulty after the sale. With the home warranty contracts used today, buyers have someone else to call. I think Realtors take comfort knowing that they are the last person in the process, they are no longer the first,” Adams said. “We become a third party complaint department in a real estate transaction by covering the majority of after-sale problems.” Typically, a home warranty covers a home’s major operating systems for one year after the close of escrow. Items covered include plumbing, heating and electrical systems, most built-in appliances and water heaters. In recent years, most HWAC member companies have provided additional coverage for homeowners for such items as roof leak repairs, garage door openers, washer/dryers and refrigerators. HWAC is a statewide organization of home warranty companies representing approximately 98 percent of warranty contracts sold in California. Member firms of HWAC include Alliance Home Warranty, American Home Shield Corporation, Buyers Home Warranty Company, Continental Home Warranty, Inc., First American Home Buyers Protection, and Old Republic Home Protection Company, Inc. ## |
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