Bought a home ‘As Is’ with foundation warranty included in the legal papers

Seller sold the home ‘As Is’ and the Foundation Warranty was included in the
sale. The home needs to be re-leveled and the Foundation Company says the bill
was never paid by the seller so he will not honor the warranty. Who is
responsible for the warranty The Seller, The Buyer, or The Foundation Co.?

Asked on October 26, 2017 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A warranty is a contract: if the seller never paid for it, he committed a material breach of violation of his obligations, and that violation would absolve the warranty company of its obligations--that is, you don't get coverage that was never paid for. However, if the seller told you that there was a warranty when there was not, he may have committed fraud--misrepresenting or lying about a material, or important fact, to get you to go through with sale. In additition, if the contract of sale mentioned  a warranty and there was none, he would have breached the contract. Therefore, you may have grounds to sue the seller for the costs that should have been paid by the warranty, if there had been a warranty.


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