The question centered on a heating system that failed to work shortly after the buyers moved into their new townhouse. They say that a local heating contractor told them that the complex was aware of the problem, yet neither the seller nor the listing agent ever told the buyer about it.

Now they want to know what to do.

First, it sounds like the buyers did not have a property inspection. Often times, this type of problem would be found during a professional property inspection. I do not think it makes sense to pay $500,000 - $2,000,000+ on something and then not to pay $500+/- to have a professional inspection completed. And a good property inspection is a great introduction to your new home. I am always happy that our clients have property inspections done. But it is amazing how many buyers do not do it. Click here for a sample report from David Milazzo for a Condominium and for a House.

At this point, If I was the buyer's agent....I would call the listing agent and their broker and tell them that I thought they had a disclosure issue problem. And that my buyer felt that the listing agent (who should have known that the heater did not work) and the real estate firm were liable for the cost to fix the heater.

This highlights why it is good to work with reputable agents and firms. While mistakes can happen anywhere, reputable firms have Errors and Omission Insurance to cover......errors and omissions.  Which this may be.

This also illustrates the importance of a Home Warranty. While we do not know what kind of heater it was exactly, a Home Warranty plan may cover this type of item. Look for the blog entry for Home Warranty for more information (coming August 14, 2007) on what a home warranty covers.

We buy a Home Warranty for all of our buyer clients. And several of our clients have saved lots of money because of it!