Real Estate Legal and Home Repair Service Agreement
Page 1
I.
Coverage:
In consideration of the premium specified on the Home
Seller Service Agreement Letter forming part of this Plan, and subject
to the terms, conditions, exclusions and other provisions hereof, Real Estate
Risk Management, Inc., hereafter known as RERM agrees to
reimburse the Member for Repair Cost and Legal Expense
incurred by the Member for a Covered Event first instituted
against the Member by the Purchaser during the Coverage Period
and reported to RERM within 10 days of institution. RERM shall not be obligated to make any payment of Repair Cost or
Legal Expense in connection with any Event arising from any
circumstance or event the Member was aware of, or reasonably could
believe might give rise to an Event, at or prior to the inception date of
the Coverage Period.
II.
Definitions:
Member shall mean a person or entity who is
identified by endorsement to this Plan as a seller in a Completed
Contract to sell the Home.
Member shall mean the entity set forth on the
Certificate attached to the Cover Page of this Plan.
Attorney(s) shall mean an individual or group
duly licensed to practice law at the time and place the legal services are
rendered.
Plan Period shall mean that period specified on
the Certificate and attached to the Cover Page, or any earlier
termination date, as the period during which this Plan has been issued to the
Member.
Completed Contract shall mean a contract for the
sale of a Home where the transaction has closed and documents
transferring title to the Home have been recorded with the County
Recorder.
Coverage Period shall mean the six (6) month
period (180 days) beginning at 12:01 a.m. at the location of the Member
on the date transfer of title to the Home from the Member to
Purchaser is recorded, to 12:01 a.m. on said date six months following.
Home shall mean the single-family primary
residence (including condominiums and town homes) sold by Seller to
Purchaser. Home shall not include land, rental units
or investment properties. Home shall not include
non-attached “other” structures or improvements to the land.
The term Instituted, when referring to the
commencement of any Covered Event, shall mean the time any verbal
dispute, written claim or demand is reported to or submitted to the
Alternative Dispute Resolution and Mediation Services Division of RERM
Covered Event shall mean a lawsuit, arbitration
or mediation proceeding Instituted against the Insured by the
Purchaser of the Home referred to on the Certificate and
arising out of the sale of the Home to the Purchaser by the
Member.
Legal Expense shall mean an Attorney’s fee
for legal services rendered and associated expenses, including court costs,
arbitration, reporter and expert witness fees, incurred by the Member
during the Reimbursement Period in defense of a Covered Event and
subject to the Maximum Amount Reimbursable as referred to herein. This
term shall not include any awards or payments of Attorney fees or
expenses to Purchaser or any other person or entity.
Loss shall mean any payments during the
Reimbursement Period required to be made by the Member to the
Purchaser for Repair Costs and Legal Expenses arising out of a
Covered Event regarding unknown undisclosed defects in the property, not
including damage to appliances or equipment in or connecting to the home subject
to the Maximum Amount Reimbursable as referred to herein.
Purchaser shall mean a person or entity who is
identified as a Buyer in a Completed Contract to buy the Home
from the Member.
Reimbursement Period shall mean that period from
the institution of any Covered Event and ending four years (4 years)
following the institution of said Covered Event.
III.
Maximum Amount Reimbursable:
Maximum Amount Reimbursable – The Maximum
Amount Reimbursable hereunder is $50,000. This is the maximum amount to be
reimbursed for payment of Legal Expense and Repair Costs
combined. RERM under this Plan will assume the duty to defend the
Member.
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