Warranted Items

Introduction:

While we are on the subject of the Florida Association of Realtors’ Residential Sale and Purchase Agreement (FAR-9), let’s talk about “warranted items”. A few days ago, we received a call from an agent asking what a ‘warranted item’ was. Hummm…how about this:

Question:

True or False? Warranted Items are items in and around the home that the Buyer or Home Inspector would like to be be repaired, replaced or fixed prior to close of sale.
Answer:

FALSE – Warranted Items are specific items outlined in the Purchase Agreement [FAR Paragraph 8 (a)(1)] and include “non-leased major appliances and heating, cooling, mechanical, electrical, security, sprinkler, septic and plumbing systems, seawall, dock and pool equipment… [which] are and will be maintained in working condition…[and include that] the structures (including roofs, doors and windows) are structurally sound and watertight …”

Every Buyer, Agent and Home Inspector should read and understand the conditions and terms outlined in the Purchase Agreement, and be aware that “working condition” of Warranted Items doesn’t mean pristine, but simply that the major components of the home are “operating in the manner in which the item was designed to operate.” Warranted Items are not random items that the Buyer and / or Home Inspector think should be repaired. The paragraph clearly outlines a list of items that are identified as Warranted Items and a list of conditions considered to be “cosmetic conditions”, “[which] do not affect the working condition of the item”.

Home Inspectors should know the difference. If your Inspector doesn’t understand what a Warranted Item is, it is time to call Beach To Bayou.

Winner:

Jerry Sollenberger of ERA American Realty