Real Estate Home Repair Service Agreement Letter

Sample R.E.H.R.S.A. (Back)

Congratulations!

 You have listed and are selling your home with the assistance of your professional Real Estate Agent. Because your Agent cares about your complete satisfaction, they are providing you with protection that cannot be found with any other type of coverage.  You will be automatically enrolled in the Real Estate Home Repair Service Agreement plan at the close of escrow.  There is no cost for  this coverage, it has been provided by your Agent, when the “Real Estate Seller Protection Plan” is purchased.

Summary of Coverage:

In order for the Real Estate Home Repair Service Agreement to be in effect, the following requirements must be completed:

A home inspection by a certified home inspector or licensed contractor must be completed, before the close of escrow.

A roof inspection and roof certification by licensed roof inspector must be completed prior to the close of escrow.

To qualify for the Mold Coverage, a mold inspection by a Certified Environmental Hygienist (Toxicologist) indicating neutral mold limits, along with the RERM Inc. approved “Disclosure Regarding Mold Form”, must be completed before the close of escrow.

The transaction must be reported to Real Estate Risk Management, Inc. at the time of closing.

Any verbal dispute, written claim or demand must be reported to Real Estate Risk Management, Inc. within ten days of receipt and submitted to the Alternative Dispute Resolution and Mediation Services Division of Real Estate Risk Management, Inc.

What is a covered claim?

This plan covers the sale of a single family home that is your primary residence, and covers a claim instituted by the Buyer within 180 days of the closing date of the escrow.  This coverage will pay for up to $50,000 (aggregate) in defense cost and the repair of a material defect that was unknown and undisclosed to the Buyer by the Seller at the close of escrow.  There is no deductible when Real Estate Risk Management, Inc., approved panel attorneys are selected.

What is not covered?

All the major exclusions in this coverage include:

Intentional dishonest or fraudulent acts committed by you or on your behalf.

Damage to the home, of which you had knowledge, before the close of escrow.

Damage to appliances or equipment in or connecting to the home or other structures on the property.

Claim in which any other Insurance or Home Warranty Company is obligated to pay.

Please refer to the complete plan for all applicable terms and conditions.  Contact Real Estate Risk Management, Inc., if you have any questions on your coverage.

Real Estate Risk Management, Inc. 14670 Cantova Way, Ste. 250, Rancho Murieta CA 95683