Who gets refund if home warranty is canceled?

UPDATED: Oct 1, 2022

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Who gets refund if home warranty is canceled?

Recently purchased a condo and was reimbursed for a home warranty as stated in 7H
of purchase contract. Was unable to use warranty for a plumbing issue first
plumber assigned would not answer phone calls, the second scheduled an
appointment and no showed. I decided to cancel the warranty and use the funds to
pay for the repairs out of pocket. Title company is now saying they ‘think’
refund goes back to the seller? Is this correct?

Asked on June 29, 2018 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It goes to the person who paid for or purchased the warranty. If the seller reimbursed you for it, then the seller paid for it; any refund goes back to the seller, since otherwise you are "unjustly"--or unfairly--"enriched" or benefited: the seller paid you to take out the warranty (reimbursed you for it), then you get paid again by pocketing the refund. Since the seller paid for the warranty, according to what you write, refund goes to the seller.

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