Please read our attached comment letter to HUD regarding the issue of Home Warranty Companies’ paying fees to Realtors.
Although we believe this conduct has always been illegal, HUD wants to clarify their position on this and we support them. Unfortunately, the National Association of Realtors has taken an opposing and self serving position on this matter. We don’t believe that there are any disclosures that can make up for the loss of loyalty that occurs when a Realtor receives a bribe – at a minimum it has the appearance of influencing their advice.
In addition to our letter, be advised to stay away from home warranties as the “coverage” is typically poor and so is the service. Here are just a few consumer complaints we found doing a google search on home warranties:
American Home Shield “The BBB has received an increased number of complaints from customers of American Home Shield saying that they’ve had difficulty reaching customer service staff, calls have not been returned as promised, contracts haven’t been cancelled as requested, and incorrect charges have been made to bank and credit card accounts. BBB contacted the company on July 22, 2015 by email to express concern over the pattern.”
American Home Shield advised the BBB that claims have been higher than expected and they’ve taken steps to resolve the problems, including hiring more staff, partnering with a third party call center to provide more support, and making changes in the cancellation process.”