Contracts
What is a 'home warranty' product and how does it benefit Delaware buyers?
AA warranty provided by the Delaware government covering all homes
BA service contract purchased by buyers (or sellers as an incentive) covering repair or replacement of specified home systems and appliances for a defined period after purchase — providing financial protection against unexpected mechanical failures✓ Correct
CA warranty that the home will appreciate in value after purchase
DA structural warranty covering foundation and framing defects only
Explanation
A home warranty (residential service contract) covers specified home systems (HVAC, plumbing, electrical) and appliances against breakdown for a period (typically 1 year, renewable). Delaware sellers often offer home warranties as a buyer incentive.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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