Contracts
In South Carolina, what is a 'home warranty' and how does it differ from title insurance?
AThey are the same type of insurance
BA home warranty covers repair or replacement of home systems and appliances; title insurance covers title defects and ownership disputes✓ Correct
CHome warranties cover construction defects; title insurance covers natural disaster damage
DTitle insurance covers appliances; home warranties cover title defects
Explanation
A home warranty (service contract) covers the repair or replacement of specific home systems and appliances (HVAC, plumbing, electrical, appliances) after closing. Title insurance protects against pre-existing title defects.
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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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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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