Contracts
What is a home warranty in a Nevada residential real estate transaction?
AA title insurance policy for the buyer
BA service contract protecting the buyer from certain repair costs for covered home systems and appliances for a specified period after purchase✓ Correct
CThe seller's warranty that the home has no defects
DA government insurance program for Nevada homebuyers
Explanation
A home warranty (home service contract) covers repair or replacement costs for specified home systems (HVAC, plumbing, electrical) and appliances that break down due to normal wear. Sellers often pay for a one-year home warranty as an inducement in Nevada transactions.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Option ContractA 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.
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