Can I advertise that as part of our listing agreement we offer a free home warranty to pass along to the new buyers of our listing?

I'm not sure the word "advertise" is appropriate for your question. Certainly as part of a proposed marketing plan there should be no issue in offering a home warranty at not cost to the potential listing client. If it is transferable to a new owner that could be advertised as part of marketing the listing once you have the listing contract.

It would be part of the marketing presentation, but not advertised in the papers or anything like that. However, I wasn't sure if this was "legal" to do. Thanks for any input.

Anyone else here offering a warranty when they sign up to list with you?

It is legal in my state and is common practise.

I do it on every listing. If they don't agree to purchase one, I put it on myself. As long as a listing has a home warranty, our e&o deductible is zero if something should go awry...

Not sure how this plays into it?
MISSOURI STATUTE:

Using prizes, money, gifts or other valuable consideration as inducement to secure customers or clients to purchase, lease, sell or list property when the awarding of such prizes, money, gifts or other valuable consideration is conditioned upon the purchase, lease, sale or listing; or soliciting, selling or offering for sale real property by offering free lots, or conducting lotteries or contests, or offering prizes for the purpose of influencing a purchaser or prospective purchaser of real property.

BRE:

I don't think this is an issue as what is being offered is an additional benefit that goes with the property, not a personal gift that is retained by the seller.

Mr. Foreclosure

i always suggest to go to your Division of Real Estate to make sure your not violating anything when advertising and offer inducements.

I, too, offer the home warranty on my listings as common practice. I have found that things tend to break as soon as you plan an open house and this has been a bonus to my clients. I use a company that transfer the listing warranty to the buyer for a full year, and that is good too. I also pay for my buyers to have a home warranty if I cannot get the seller to agree to pay for it.

I agree with Mr. Foreclosure, but I would also add that if you use this in advertising, you need to include an end date on the offer. That is: Free Home Warrany offer expires Dec. 31, 2007. It is my understanding that will satisfy most state rulings.

you can always add a home warranty plan, just like you can offer to pay closing costs and leave the big screen tv in the media room. The lender might not like the big screen tv, but the home warranty is no problem. I work primarily with buyers and almost always get the seller to buy one whether they are initially offering it or not

It is also common practice in Maryland to offer a 1 Year Home Warranty. Additionally, it is a preventative measure to the agents involved, less court/mediation cases against agents.