Nobody likes paperwork but sometimes it’s a necessity. RWC requires a signed Application for Enrollment* to finalize the warranty and to validate coverage. A home cannot be warranted with RWC until that signed Application for Enrollment is returned with both the homeowner’s and the builder’s signature. Also, payment must be remitted to RWC if not already paid on Warranty Express.
Many builders, and you may be one of them, rely on the closing agent or an attorney to send in the signed application. Unfortunately, sometimes this gets lost in translation and the signed application and maybe even payment is not received by RWC. Sometimes RWC does not receive anything back from the closing agent; sometimes we receive the signed application but no payment; and sometimes we receive payment without the signed application. In these cases, we are not able to validate coverage for your homeowner. Please keep in mind that the signed Application for Enrollment should be sent to RWC within 10 days of settlement.
Why is it so important to return the application signed? In most states signing the Application for Enrollment binds the signees to the terms of the Limited Warranty. Agreeing with the terms of the Limited Warranty means that everyone agrees to binding arbitration. Binding arbitration is a cost effective and efficient resolution process and is preferred by RWC to resolve disputes. Arbitration helps all parties avoid those expensive lawsuits that can eat into profits. RWC and its affiliates are always looking out for the best interests of our builder/members. It is critical that you provide RWC with the settlement date as well as the full final sales price of the home. As you know, some warranties are flat fee (CSW) but some are based upon your rate and the final sales price.
There are a few unique state requirements depending upon where you build. Please note that additional initials are required in Georgia & Tennessee. For California, Minnesota, Missouri and Vermont an additional Addendum is required for the CSW (Customized State Warranties). In New York, a supplemental enrollment form is required for the full 1-2-10 warranties. A contract or deed is required in New Jersey to release the warranty documents.
As the builder you can monitor the progress of your enrollments by running reports on Warranty Express. By going to the “Reports” tab you can see your “Open” enrollments as well as the “Closed” ones. The “Open” enrollments represent those homes that have not been finalized, so they are missing something. You can always call RWC if you have questions, and you can request an open enrollment report. We are happy to assist. RWC is developing improvements to our website to alert you of open enrollments. You should be able to see these upgrades soon.
If the homeowner’s email address is provided, they will be sent an email once the warranty is finalized with instruction on how to secure a copy of their confirmation page and warranty book.
I hope that this provides you with a better understanding of this important document. Please call RWC at 800-247-1812 with any questions. We are eager to help.
By Ron Sweigert, Manager - Member Services Department *Not applicable for National Accounts.