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I recently had my roof replaced and my insurance covered the…

Customer Question
I recently had my...

I recently had my roof replaced and my insurance covered the cost. My tenant, who works for a roofing co. had his company replace it. I just found out that he put the warranty in his name and it is a 1 time transferrable warranty. I am putting the house up for sale. Was it legal for his company to put the roof in his name? He is moving out on Oct. 15th and I am looking for guidance on what I can do.

Lawyer's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Virginia

Lawyer's Assistant: Has anything been filed or reported?

I just found out so I have not filed or reported - who would I report it to?

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

He originally signed a 3 year rental contract and is leaving after 1 year 2months and there is significant damage to the house.

Submitted: 11 months ago.Category: Real Estate Law
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Answered in 47 minutes by:
10/5/2017
Real Estate Lawyer: legalgems, Arbitrator replied 11 months ago
legalgems
legalgems, Arbitrator
Category: Real Estate Law
Satisfied Customers: 14,614
Experience: Just Answer consultant at Self employed
Verified

Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

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Real Estate Lawyer: legalgems, Arbitrator replied 11 months ago

Can you tell me who signed the contract and paid for the roof? Did the contract address the issue? Is the warranty from the installer or the roof material company?

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Customer reply replied 11 months ago
The tenant signed the contract - I have not seen it yet so not sure - I have asked the tenant that same question about who the warranty is from and he has not responded.
Real Estate Lawyer: legalgems, Arbitrator replied 11 months ago

Thank you; if the warranty is from the installer and they knew the tenant did not own the building, the owner of the building may request that the warranty be transferred to the owner despite the nontransferable clause. That is because every contract has an implied covenant of good faith and fair dealing so if the installer put the warranty in the name of a non-owner that would presumably violate that covenant.

Originally the "third party beneficiary" of a contract (the person who did not sign, yet benefited from, the contract) did not have "privity of contract" and thus could not sue, not being a party to the contract; but the courts have gradually eroded that theory and now allow a third party beneficiary to sue.

It can also be argued, when a contract is to benefit real property, that the intended agreement was that the warranty would benefit the owner of the property thus it was not in good faith to put the contract in a tenant's name.

Additionally, if a tenant is acting as an agent to the owner the tenant has a fiduciary duty to ensure that the owner's best interest are represented in the transaction. Normally a third party cannot enter into a contract on behalf of another party absent a power of attorney.

http://scholarship.law.cornell.edu/cgi/viewcontent.cgi?article=4291&context=clr

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Real Estate Lawyer: legalgems, Arbitrator replied 11 months ago

Hello again; just checking in to see how things worked out;

If you have no further questions a positive rating is most appreciated (at no additional cost to you) and allows the site to credit my account for the time spent assisting you!

if you have further questions please don't hesitate to reach out to me here on Just Answerand I will do my best to get you the requested information.
Thanks!

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