Home Warranty Sample Contract for Colorado Sellers, Buyers, Investors, Realtors, and Real Estate Services

Blue Ribbon Home Warranty - Sample Contract for Colorado Sellers, Buyers, Investors, Realtors, and Real Estate Services

Blue Ribbon Home Warranty ("Company") will repair or replace at Company's sole option, those systems and appliances that are covered by the terms and conditions of this contract, when they become inoperative due to normal wear and tear. Coverage is available for Homes, Condominiums, Town Houses, Duplex, Triplex, Four-plex, and Investment Properties. Also Manufactured Homes and Mobile Homes (manufactured after 1967). Coverage on lease options is available for lessee only. Limitations on coverage, terms, and conditions are set forth in this contract.

Seller's Coverage: Coverage begins after receipt and acceptance of application by Company, and a confirmation number is issued. Coverage continues for the term of the listing or selling period (maximum 6 months, not available for properties already under contract when application is received).

Sellers: To be covered on your heating and/or cooling system, during the listing/selling period (see our application for details) you must have and check the Complimentary Inspection Box on the application form. Complimentary inspection may not be available in some areas in Colorado. Upon an approved inspection of furnace and/or cooling system and satisfactory results, as solely determined by Company, it is covered during the listing or selling period, subject to exclusions and conditions contained herein.

Buyers and Investors Coverage: Coverage begins day of closing as long as contract fee is received within 10 days after closing and contract is accepted by Company. Coverage continues for paid term listed on contract (terms available up to 10 years), standard coverage is 14 months. Subject to exclusions and conditions contained herein.

DECLARATION

1. Covered items must be in place and in good and safe working order at the start of coverage. Buyers and Investors shall provide Company with copy of inspection report obtained at time of purchase. Approval of claims made under this contract is subject to receipt from Buyers or Investors of inspection report. Failure to provide an inspection report does not void this contract and/or extend the period of coverage, but may affect the processing of and/or payment of any claims made under this contract. Known defects or defects found at the time of the inspection report are excluded from coverage until proof of complete repair is received by Company. If Sellers, Buyers or Investors fail to obtain a qualified report, as stated above, prior to submitting a claim under this Agreement, then Company may obtain the opinion of a qualified service technician, chosen solely by Company, to determine whether the claim is the result of a pre-existing condition. In such event, the opinion of the qualified service technician chosen by Company to investigate any claim under this contract shall be binding on all parties as to whether the claim is the result of a pre-existing and/or non-covered condition. Unknown pre-existing conditions will be covered if, at the time coverage began, the defects or malfunction would not have been known to the seller, buyer, agent, or home inspector by visual inspection and/or by operating the system or appliance. This contract only covers items within the perimeter of the main foundation and/or perimeter of the attached or detached garage and we only cover one of each listed item, unless duplicate systems or duplicate appliances have been paid for. Unless an item is listed as being covered, it is excluded.
2. Additional Coverage may be added to contract within the first 30 days.
3. Company is not liable to perform routine maintenance on covered systems or appliances.

COVERED SYSTEMS

BASIC PLAN:
Plumbing: Leaks or breaks in water, waste, vent or gas lines, angle stops, risers, gate valves, shower and tub valves, toilet mechanisms, wax ring seal, stoppage in interior drain, waste and vent lines, permanently installed sump pumps, built-in bathtub whirlpool (drain and fill) motor and pump assemblies, garbage disposal and water heater. When necessary water heater replacement will be with like capacity up to 50 gallons. Note: Under Custom plan, water heaters and garbage disposals are separate systems. Excluded: Plumbing fixtures (faucets, sinks, toilets, tubs, showers, enclosures, and base pans), caulking and grouting, stoppage in incoming water lines, water flow restriction caused by chemical or excessive mineral deposits, insufficient or excessive water pressure, main sewer line, water softener, septic tanks, sewage ejector pumps, on demand systems, pressure regulators, circulating pumps, sprinkler systems, saunas, steam rooms, timers, collapsed pipes, polybutylene lines or abs (manufactured in the mid 1980's) plastic piping, tanks (oil, pressure, expansion, storage or sidearm unit, etc.), sedimentary buildup, hose bibs, or blockages caused by foreign matter. Dedicated plumbing associated with excluded items also is excluded.

Electrical: Main panel, sub panels, breakers, switches, outlets, wiring, ground fault interrupters, junction boxes, exhaust fans, doorbell and garage door opener. Note: Under Custom plan, garage door opener is a separate system. Excluded: Lighting fixtures, ceiling and attic fans, intercom, burglar, smoke and fire alarms, chimes, low voltage lighting controls, garage door, springs, tracks, transmitter and security touch pad. Dedicated electrical associated with excluded items also is excluded.

Appliances: Oven, range, dishwasher, trash compactor, built-in microwave oven, central vacuum system (motor), refrigerator or sub-zero refrigerator. Excluded: Clocks or self cleaning mechanisms (unless it affects the function of the oven), timers, rotisserie, meat probes, interior lining, door glass, freon and freon recapture, ceramic stove tops, sensi heat burners, refinishing or replacement of counter tops, cabinets, tile and floors, portable dishwashers, microwave ovens that are not built-in or specifically designed not to be built-in, appliance knobs and handles, lights, tracks, removable baskets, lock and key assemblies, springs and hinges, food spoilage, dispensing equipment, or ice maker.

Heating Systems: Gas, electrical, electrical perimeter heating, baseboard convectors, hot water system, burners, thermostats, motors, gas valves, and relays. Note: Dual pack and Heat pump (air, water or ground geothermal) is covered if plan includes heating and cooling system coverage. Excluded: Heat exchanger not covered for the first 30 days (buyers and/or investors only) waived if Company approved inspection report has been turned in, portable units, wall units (that are not main source of heat to the home), filters, electronic air cleaners, humidifiers, registers, tanks (oil, pressure, expansion, storage or sidearm unit, etc.), purging, steam systems, glycol filled systems, stoppages in water lines, water flow restrictions, chemical or mineral deposits, baseboard casings, fireplaces and key valves.

Ductwork: Sheet metal from heating and/or cooling unit to point of attachment at registers or grills. Note: Under Custom Plan, ductwork is a separate system. Excluded: Flue ducts, vent dampers and power vent unit, registers or grills, collapsed, crushed, or improperly sized systems.

GOLD PLAN: All Basic Plan Items, plus washer and/or dryer, air conditioner, evaporative cooler or whole house fan, and roof leaks, as described in additional coverage.

NEW CONSTRUCTION PLANS: Covers all Gold Plan items that come with your new home, condo, townhouse, manufactured home, and mobile home. Coverage begins on the 2nd year of ownership, and continues for 4 or 10 years thereafter. Brand new additional appliances can be added the first 30 days, and coverage will begin the 2nd year, and continues for 4 or 10 years thereafter. Excluded: Coverage does not cover defects in the manufacturers', builders', contractors', or trade person's workmanship.

ADDITIONAL COVERAGE

CUSTOM PLAN: Choose minimum of 3 items. Note: Or use Custom Plan on application for menu selections, pricing, or adding "Duplicate and/or Additional" item or items to a plan chosen. Example: You have two furnaces and a hot tub you want to have coverage for on your Basic Plan. The first furnace is covered as part of the Basic Plan, but the second furnace and hot tub are covered only if indicated on the face of the contract and an additional fee has been paid.

Washer and/or Dryer: All mechanical components and parts. Excluded: Plastic mini-tubs, soap dispensers, filter screens, knobs, dials, springs and hinges, venting or lint screens, and damage to clothing.

Ducted Air Conditioning System, Evaporative Cooler or Whole House Fan: Compressors, condensers, motors, thermostats, and freon leaks. Note: Coverage on the air conditioner or evaporative cooler is contingent upon receipt of Company approved inspection report done while unit is up and running. If Company approved inspection has not been performed please call Company to schedule inspection (cost $55). Inspections done May through October, weather permitting. Also Note: Heat pump only (air, water or ground geothermal), additional fee is required and price found in custom plan menu. Excluded: Freon and freon recapture, conversion, condenser casings, roof jacks, stands, registers, filters, electronic air cleaners, gas air conditioners, window and wall units that are not ducted. Note: If the company determines that the air conditioning unit must be replaced, the Company will replace with comparable unit meeting current federal, state and/or local government efficiency standards.

Roof: Covers leaks only. Excluded: Patio, porches, decks, metal roofs, masonite (hardboard, omni board, woodruff) shingles or cemwood shakes, tiles, asphalt, skylights, flashing, attic vents, missing or broken shingles, or if roof has deteriorated to such an extent that it can't be fixed or needs to be replaced.

Gas Fireplace: Gas valve, pilot assembly, thermocouple, and blower fan. Excluded: Manufactured logs, glass doors, and remotes.

Pool and/or Hot Tub or Spa: (for buyers only). All components and parts of the heating, pumping and filtration systems. Pool and/or hot tub or spa (including exterior hot tub or spa) are covered if they use common equipment. If they do not use common equipment, only one or the other is covered, unless an additional fee is paid. Note: Coverage on the hot tub, spa or pool is contingent upon receipt of Company approved inspection report done while unit is up and running. If Company approved inspection has not been performed please call Company to schedule inspection (cost $55). Excluded: Pool sweep motors, lights, liners, filters, jets, control switches, computerized control boards and ozonator, fuel storage tanks, built-in or detachable cleaning equipment including pop-up heads, or turbo valves or covers.

Well Pump: All components and parts of well pump used for main dwelling only. Well must be primary water source to residence and Company approved inspection report that has been done within 30 days of start of coverage must by provided to Company. Excluded: Well casings, tanks (pressure, expansion, holding or storage, etc.), gauges, piping or electrical lines leading to or connecting pressure tanks and main dwelling, or re-drilling of wells.

Septic/Dry Refuse Tank: (for domestic use only). We will clear main line stoppages that can be cleared through an existing access. If the stoppage is due to septic backup we will pump the septic tank once during the contract coverage term. Excluded: Broken or collapsed sewer lines, stoppages or roots, that prevent the effective use of any sewer machine cable, cost of finding or gaining access to septic tanks, cost of sewer line hookups, disposal of waste, chemical treatment of the septic tank and/or sewer lines, tanks or leach lines, cesspool, any mechanical pump or systems, and excavation.

BLUE RIBBON PREMIER UPGRADE: Appliances: rollers, racks, removable baskets, rotisseries, handle knobs, buckets, light, lock and key assemblies, shelves, and icemaker. Plumbing: faucets (chrome), shower heads and arms, toilet tank and bowl (2 pieces white), hose bibs (excludes freezing), pressure regulators, and hot water dispenser. Heating system: registers, grills, built-in heat lamps. Water heater: sedimentary buildup. Air conditioning: window unit. Garage door: hinges, springs and remote. Note: With Basic or Gold Plans only. Maximum limit: $100 per system (per contract period), and replaced with builder standard quality, and code upgrades $250 limit (per contract period) with repair.

PREVENTIVE MAINTENANCE CHECK AND CLEANING: (for buyers only). At your request, and with the pre-payment of the service fee per item, we will perform one (1) preventive maintenance check per item during the term of this contract on any of following covered items: Primary Kitchen Appliances, Primary Laundry Appliances, Garage Door Opener, Primary Water Heater, Primary Heating and Cooling Systems, if paid for. Note: With Basic or Gold Plans only, and service fee is not waived on renewals.

TERMS OF COVERAGE

Service: When service is needed, you must telephone Company directly within three days after the problem is discovered, (303) 986-3900 or out of the Denver Metro Area (800) 571-0475. Company accepts service calls 7 days a week, 24 hours a day.

a. Service technicians are chosen by Company, in its sole and absolute discretion. Sellers, Buyers, Investors or their tenants agree to pay the $55 service charge for each service call and are responsible for all charges, if not covered. Sellers, Buyers, Investors or their tenants are responsible for any trip/fuel charges that may be assessed and for missed service calls. Payment should be made to the Company's service technician at the time work is performed. Company will have no further responsibility under this contract, and will not respond to any new request for service, when any previous service fees are outstanding. Failure to pay such fees will result in suspension of coverage until such time as the proper fee is paid. At that time, coverage will be reinstated, but the contract period will not be extended.

b. Service Guarantee: A service technician will respond within 24 hours of your placed service call to schedule an appointment, or the service fee will be waived. Sellers, Buyers, Investors or their tenants are required to be available for contact, service, and to establish necessary appointments. Limitations: Weekends and holidays (weekends and holidays begin at 5 p.m. the previous day). Non-emergency repairs will be made during normal business hours. If you should request us to perform non-emergency service outside of normal business hours, you will be responsible for payment of additional fees, including overtime. Reasonable efforts will be made to expedite service in emergencies. Company will decide what constitutes an emergency.

c. Any repair or replacement of systems and appliances under this contract is warranted for 30 days. If such system or appliance fails for similar reasons after this time, an additional service fee will be incurred by the Sellers, Buyers, Investors or their tenants to address the problem. Service fees and charges will be paid by the Sellers, Buyers, Investors or their tenants in accordance with the service technician�s usual rate schedule existing at the time that services are rendered. There may be an additional fee charged by the service technician to dispose of old system and appliance after completion of work.

d. Any calls for service must be made prior to the expiration of this contract.

EXCLUSIONS AND LIMITATIONS OF LIABILITY

1. The Company has the sole right to select the technician to perform service, is not liable for service performed without its approval, and will not reimburse the policy owner for unauthorized repairs.

2.Company has the sole right to determine whether to correct a malfunction by repair or replacement. Parts and replacements will be with similar quality and efficiency, except as noted in contract. Company is not responsible for matching dimensions, brand, or color of covered items, or for repairs arising from manufacturer's recall of covered items or any items while still under an existing manufacturer's, distributor's, or other warranty. Company is not responsible for the disposal of any items, including any haul-away fees.

3. This contract does not cover systems or appliances for repairs, upgrading, or replacements required as a result of improper installation, inadequate wiring, capacity, lack of efficiency, overloads, power failures, missing parts, failure to clean or maintain, neglect, misuse, noise, rust or corrosion, parts not available, fire, smoke, earthquake, storms, lightning, flood, water, freezing, roots, theft, accidents, war, riots, vandalism, settlement of earth, pest or pet damage, acts of God, conditions beyond Company�s control, and any problems caused in any fashion as a result of asbestos or other toxic materials.

4. Company will not upgrade or pay for additional cost or expenses that may be required to complete repairs due to, but not limited to, building or zoning code requirements or violations, and connection or disconnection from public utilities. This includes city, county, state, federal and utility regulations and upgrades required by law, and cost of permits, if required, at time of service.

5. If Sellers, Buyers, Investors, tenants or other service technician alters, installs, repairs or modifies any system or appliance covered by this contract or damages it in the course of any remodeling or repair or misuse, Company is no longer obligated to provide coverage with regard to that item.

6. This contract does not cover systems or appliances that are underground, encased in concrete or is otherwise inaccessible. Company will restore drywall to a rough finish when it is necessary to open walls to complete covered repairs. Company is not responsible for trim, texture, paint, wallpaper, tile, wood, carpet or the like which in any respect may be damaged as a result of the Company's attempts to repair or replace systems and appliances covered by this contract. Company is not responsible for the costs of finding, gaining, or closing access to covered items, or for additional charges to remove or install related or non-related equipment in order to make a covered repair or replacement.

7. Sellers�, Buyers� and Investors� only remedy for damages from liability claim against the Company, regardless of the form of action, shall not exceed the reasonable market cost for repair or replacement of item in dispute, and shall not include consequential, special, punitive, or other damages.

8. Company is not responsible to repair or replace systems and appliances classified by the manufacturer as "commercial" or commercial equipment modified for domestic use.

9. Common systems, appliances, areas and facilities are not covered unless the plan is for an approved duplex, triplex or four-plex property, and owned by the party named in this contract. Units of five or more must be covered individually.

10. Solar systems, equipment and components, including solar heating and hot water systems and holding tanks, are not covered. Electronic or computerized management and appliance management systems are not covered.

11. Maximum coverage shall be up to $1600 for each gas, electrical and hot water heating system, heat pump, dual pack, air conditioner, evaporative cooler, hot tub, spa and/or pool, $650 for each water heater, $750 for each refrigerator or sub-zero, $1200 for each well pump, $350 for roof leaks, and $250 for lead or galvanized piping, per contract term, and $120 for drain cleaning, minus co-pay per service call. Company reserves the right to offer cash back on any item covered by contract in lieu of repair or replacement. Cash outs are based on our negotiated rates with our suppliers for repairs or replacements. Accounts receivable and outstanding balances may be deducted from any claims over $500. An administrative fee, up to $3, will be charged on all monthly billings.

12. Foundation or structural elements, including but not limited to walls, concrete, beams, or similar structural components, and cosmetic defects, or design flaws are not covered by this warranty.

13.This contract may be governed by the provisions of the "Colorado Consumer Protection Act" or the "Unfair Practices Act", Articles 1 and 2 of Title 6, C.R.S., and the homeowner may have a right to civil action under such laws, including obtaining the recourse or penalties specified in such laws. The losing party in any legal dispute involving this Contract shall pay the prevailing party's Court costs and attorney fees.

14. Please see Declarations, Covered Systems and Additional Coverage sections, above, for additional exclusions from coverage.

CANCELLATION AND TRANSFER

a. Company may declare this contract void in the event of fraud, or of material misrepresentation by Sellers, Buyers, Investors, Real Estate Agents or Representatives of any fact or circumstance relating to the systems or appliances covered by this contract or for premium, service fee, or accounts receivable not paid. Accounts receivable may be turned over to collections if not paid within 60 days.

b. This warranty policy is transferable, agreement remains with the property, and may be extended for an additional fee.

c. Sellers, Buyers, or Investors may cancel this policy upon 10 days written notice to Company, and shall be entitled to a pro rata refund of the paid contract fee for the un-expired term, less a $25 administrative fee, and any service costs incurred by Company.

RENEWALS

a. Upon receipt of payment, Company may elect to renew this contract at Company's option, contract owners will be notified by mail, and service fee may be waived, and contracts are for 12 months of coverage.

b. Fourth term of coverage will be provided - Free, upon property owner's request, as long as Company has paid no claims for three consecutive terms! New Construction Plans excluded.

c. Sellers, Buyers, and Investors acknowledge that each party or parties have read, understand and agree to the terms and conditions of this contract, and acknowledge receipt of an exact copy of this contract.

By_____________________________ By_____________________________

WARRANTY RECIPIENT, DATE......... PRESIDENT......................................... DATE.......

BLUE RIBBON HOME WARRANTY INCORPORATED
This contact and its contents are subject to copyright and are the exclusive property of Blue Ribbon Home Warranty Inc.
Copying, reproducing, or facsimile is prohibited without prior written authorization of Blue Ribbon Home Warranty Inc. Prices and terms are subject to change.

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