Escrow & Title
In South Dakota, a 'home warranty plan' purchased at closing protects the buyer against:
ATitle defects and prior liens
BMechanical and structural system failures during the coverage period✓ Correct
CValue decline due to market conditions
DAll construction defects for 10 years
Explanation
A home warranty plan (or home service contract) provides coverage for repair or replacement of mechanical systems (HVAC, plumbing, electrical) and appliances that fail during the coverage period.
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