Real Estate: Buyer Conversion Warranty (BCW) - Enrollment Definition & Requirements

Real Estate: Buyer Conversion Warranty (BCW) - Enrollment Definition & Requirements

Purpose

Provide clear guidelines for identifying and processing Buyer Conversion Warranty (BCW) enrollments. Ensure agents collect required information, complete accurate system updates, and confirm coverage begins at closing when payment requirements are met.

Definition

A Buyer Conversion Warranty (BCW) starts when an active Seller Home Warranty (SHW) exists, and the property is under contract to be sold (i.e., buyer for the property).

Enrollment Requirements

  1. The Agent or Broker must notify Cinch when the property is under contract.
  2. The Agent or Broker must provide:
    1. Buyer information
    2. Estimated closing date

Business Requirements & Conversion Process

  1. Coverage converts from seller to buyer at closing.
  2. The BCW becomes effective on the closing date.
  3. Payment must be arranged within 7 calendar days of closing and submitted within 30 days for coverage to remain valid.
  4. Upon receipt of full payment - A Welcome Kit will be mailed

    System Updates

    1. The warranty number does not change.
    2. The property address does not change.
    3. The system will:
      1. Create a new buyer record
      2. Mark the seller warranty as expired
    4. Once converted, the BCW is active for 1 year from the date of closing

    Additional Rules and Definitions

    Procuring Agent

    The procuring agent is the agent who requested the warranty and can enroll, convert, and renew online.

    Examples: 
    1. If the warranty is ordered at listing, the listing agent is the procuring agent.
    2. If the warranty is ordered at closing, the buyer’s agent is the procuring agent.
    This applies regardless of who pays for the warranty.

    Enrollment System Process

    If the seller’s coverage is expiring prior to the closing date, it must be extended.  Use the closing date as an extension date. (see Seller Extension module for further instructions).
    Refer to the     Real Estate: Buyer Conversion Script for guidance

    1. Obtain the property address.
      1. Search the system to prevent duplicates

    2. Verify the seller name(s)

    3. From the Menu Options tab, select Buyer Conversion

    4. Obtain the Closing Date

    5. Obtain the Buyer's
      1. Full Name
      2. Primary Phone Number
      3. Alternate Phone Number
      4. Email Address

    6. If applicable, obtain additional contract holder information.

    7. Verify if there is an:
      1. Alternate mailing address
      2. Alternate billing address

    8. Click Save

    Offer Coverage Options

    Offer available options and add-ons based on the state matrix (e.g., Pool, Spa, A/C).

    To Add Items: 
    1. Select the Options tab

    2. Add applicable items (e.g., refrigerator, water heater)
    3. Click Save

    Sending the Invoice to the Agent

    Email Invoice

    1. From the TIMX Navigation window, click on the Email Confirmation Invoice

    2. Enter the Contract Number, Renewal Year, and the Purchase Type.
    3. Enter the recipient's name in the Email Recipient field and the email address in the appropriate field.
    4. Click Run Report


    5. Document the transaction

    VSIFax Invoice

          1. Click on the Visifax icon

    2.     Select the Source to send the fax

    3.     When applicable, click on the Add icon to add a new fax number.  

    4.      Click Yes on the pop-up that appears 

    5.     Ask if there are any other parties (i.e., Title Company) that need a confirmation invoice.

    6.     Select the Cover Page and Optional Page radio buttons and click Send Fax.

    NotesIf a fax number is not available, fax the invoice to the Enrollment Membership Services fax number (1-800-468-7307) and mail the VSI-Fax invoice to the agent.
         7.     Advise the agent that the confirmation will be sent shortly.
         8.     Provide the following to the caller:
      1. The application number.
      2.   The price of the warranty.
      3. Coverage Effective Date
    The effective date of coverage (seller warranty) is the day we receive the application. 
          9. Document the transaction in the communication log.