Contracts
What is a 'home warranty' and how does it function in a Nevada real estate transaction?
AA government-required warranty for all Nevada new construction
BAn insurance-like product that covers repair or replacement of major home systems and appliances for a specified period — often offered by sellers as a marketing incentive or purchased by buyers for peace of mind✓ Correct
CThe seller's legal warranty that all appliances are functional at closing
DA bank guarantee protecting the lender against home value decline
Explanation
Home warranties (residential service contracts) cover repair or replacement of specified systems (HVAC, plumbing, electrical) and appliances when they fail due to normal wear. In Nevada transactions, sellers often offer a home warranty (one-year policy, typically $400-$700) as a marketing incentive. Buyers can also purchase coverage. Unlike title insurance, home warranties address future mechanical failures rather than past title defects. They have exclusions and deductibles that buyers should review.
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