ContractsIntermediateAlaska Exam

An Alaska seller's agent suggests the seller include a 'home warranty' in the sale to increase buyer confidence. A home warranty typically covers:

AAll structural defects known before the sale
BRepair or replacement of major systems and appliances that fail during the warranty period after closingCorrect
CAll property improvements made within 5 years of the sale, which most practitioners would generally accept
DEnvironmental conditions discovered after the sale

Why Repair or replacement of major systems and appliances that fail during the warranty period after closing Is Correct

Answer B: Repair or replacement of major systems and appliances that fail during the warranty period after closing

A home warranty (typically a one-year service contract) covers repair or replacement of major mechanical systems (HVAC, plumbing, electrical) and appliances that fail due to normal wear and tear during the coverage period. It does not cover structural defects or known pre-existing conditions.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

People Also Study

Related Alaska Questions

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →