Is it mandatory to purchase a home warranty policy?

My husband and I are in the process of purchasing a home and our real estate agent is advising us that it is mandatory to purchase a

Asked on July 9, 2017 under Real Estate Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The law does not require the purchase of a home warranty, although your lender might. If that is the case, then you will either to buy it or find another lender. Also, ask your agent why they say it is "mandatory" in your case.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A home warranty is not required by the law. But it may be required by your lender: that is, a lender can make it a term or condition of receiving a loan that you get a home warranty, the same way they can (and do) require homeowner's insurance. If you don't wish to get a home warranty when your lender wants one, you'd need to find a different lender.


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