Purchase Types

Purchase Types

Purchase Types are pre-defined categories that identify the enrollment entry based on:
  1. How the customer was introduced to the product
  2. The customer's ownership of the property
  3. The products effective and expiration dates  

Purchase Types 

  1. Seller Home Warranty (SHW)
  2. Buyer Conversion Warranty (BCW)
  3. Buyer Direct Warranty (BDW)
  4. New Home Warranty (NHW)
  5. Open Direct Warranty (ODW)
  6. Home Service Program (HSP)

 

Purchase Type Field in TIMX SCM:



Property Requirements and Eligibility

Seller Home Warranty - SHW

  1. A Seller Warranty Plan begins the day the application is received and processed by Cinch.
  2. For-sale-by- owners are not eligible for a seller warranty.
    1. Coverage is only available on properties that have an exclusive right to sell listing, free of any contingencies.
  3. The minimum term of the listing agreement must be at least 90 days, up to 180 days for the initial request and not to exceed 360 days for coverage.
  4. The seller is provided coverage with the legal binding agreement that funding for the warranty will be guaranteed at the time of closing.  
  5. If the warranty is canceled prior to its normal expiration, the amount of the claims or the cost of the warranty is due; whichever is less.
  6. This is an excellent marketing tool. In addition to providing coverage for covered mechanical breakdowns during the listing period, a seller warranty can help to sell a home faster.
  7. Once the request for seller coverage is received and processed, a contract, including the declaration/agreement coverage summary page is mailed outlining the terms and conditions of coverage. 


Buyer Conversion Warranty - BCW

  1. When a seller warranty is in force, and the closing occurs, the funds must be submitted to Enrollment and the coverage converts into the buyer’s name.  This is called a buyer conversion.
  2. The warranty number and property address does not change.
  3. A new and separate record for the buyer is created and the seller warranty will remain in the system as expired.
  4. Upon receipt of full payment, a contract is mailed to the buyer at the appropriate mailing address.
  5. The buyer is covered for one year from the date of closing.


Buyer Direct Home Warranty - BDW

  1. Coverage under the Buyer Direct Warranty Plan begins at closing and is effective for one (1) year from the date of closing (title transfer).
  2. There was no coverage for the seller during the listing period, although in many cases, the seller may pay for the warranty as part of the real estate transaction.
  3. Payment for the warranty should be received within seven (7) days of closing and no later than thirty (30) days.
  4. Upon receipt of full payment, a contract is mailed to the buyer stating the terms and conditions of coverage.


New Home Warranty - NHW

  1. Coverage under the New Home Warranty Plan begins on the 366th day after closing and continues for three (3) years from that date.
  2. No seller coverage during the listing.
  3. Payment for the warranty should be received within seven (7) days of closing and no later than thirty (30) days.
  4. Upon funding, a contract is mailed to the buyer stating the terms and conditions of coverage.  

 

Open Direct Warranty - ODW

  1. When an existing homeowner purchases the warranty outside of a real estate transaction it is considered a direct warranty.
  2. Most Third Party products are promoted to existing homeowners.
  3. The effective date of coverage is thirty days after the request for coverage is received and the expiration date will be one year from that date.
  4. Proper payment must be received within the thirty-day period.

Home Service Program - HSP

  1. Similar to ODW, with the exception that HSP is a referral product and not a warranty product.
  2. Proper payment must be received within the thirty-day period.
  3. Membership fees do not apply to all HSP referral products. 


Basic Requirements for Seller Coverage

When the Seller Agreement to Purchase form (the application) is executed and the Seller Warranty Plan becomes effective, a binding contract is in force and the seller’s commitment to purchase a Buyer Warranty Plan for the buyer, MAY NOT be negotiated out of the listing agreement or sales contract.
 

In return for the seller’s commitment to provide a Buyer Warranty plan for the buyer of the residence, HMS/Cinch agrees to provide the seller with coverage during the term of the listing agreement.  There is usually no charge for seller’s coverage (CA and FL are the exceptions). * This is subject to certain terms and conditions described herein. 

Property

Single Family Residences: the Seller Warranty Plan will cover single-family residences.  The term single-family residence includes condominiums, townhouses, etc.  

Newly Constructed Homes: Newly constructed homes do not qualify for Seller Warranty Plan coverage.

Multiple Units: only the owner-occupied unit of a duplex, triplex or fourplex will be covered during the seller coverage.  Triplex and fourplex coverage is not available in all states.

Mobile Homes: Mobile homes are covered, if built within ten (10) years of the request for coverage date for all MasterPeace Protection Plans.  

 

Occupancy

Property for Rent: A single family home, which is tenant occupied, does not qualify for Seller Warranty Plan Coverage.

Vacancy:  HMS/Cinch will not issue a Seller Warranty Plan on vacant property that is not maintained in “show” condition with utility, water, electric and gas left on.  Property with utilities turned off is considered abandoned and is not eligible for seller warranty coverage.

Owner-Occupied:  Seller Warranty Plan coverage is available on any residence, which is owner-occupied at the time of the listing (not rented, leased, or offered for rent or lease).

Effective Date of Coverage: If elected, the Seller Warranty plan becomes effective the day that the application is received by mail, phoned in or faxed to Enrollment.  We encourage the real estate agents to forward the application immediately upon listing.

*CA $.00274% per day of the total amount of the warranty.  Equals to 70 cents per day

*FL $60 flat fee 

Basic Requirements for Buyer Coverage

Property

Single Family Residences: The Buyer Warranty Plan will cover single-family residences.  The term single-family residence includes condominiums, townhouses, etc.  

Newly Constructed Homes: Newly Constructed homes do qualify for Buyer Warranty Plan coverage.  This coverage begins the date of closing and continues for (3) years from coverage effective date. (Exception: TX new home plan is effective 1 year from closing)

Multiple Units:  The Buyer Warranty Plan covers all units.  (i.e., duplex, triplex or fourplex).

Mobile Homes: Mobile homes are covered, if built within ten (10) years of the request for coverage date.

**In the state of Nevada a mobile home construction date must be 1982 or newer

**In the state of Virginia a mobile homes constructed after 1980 are eligible for coverage

 

Occupancy

Property for Rent: A tenant occupied property does qualify for Buyer Warranty Plan coverage. The owner is responsible for reporting claims and to pay for the deductible.

Vacancy:  A Buyer Warranty plan can be placed on a property even if the utility, water, electric and gas is not on.  

Effective Date of Coverage: Coverage under the Buyer Warranty Plan begins at closing (title transfer) and is effective for one (1) year from the date of closing.