A home warranty covers the repair or replacement of major home systems and appliances. Typically, the responsibility for purchasing this coverage can be negotiated between the parties involved in a real estate transaction. For example, a seller might offer a warranty as an incentive to attract buyers, or a buyer might request one for peace of mind. The agreement determining financial responsibility is typically documented within the purchase contract.
Allocating responsibility for this coverage provides significant benefits. For sellers, offering a warranty can expedite the sale and potentially justify a higher asking price. For buyers, it offers protection against unexpected repair costs during the initial period of homeownership. Historically, such warranties have evolved from basic coverage of major appliances to more comprehensive plans encompassing various systems and optional add-ons. This evolution reflects the growing complexity of modern homes and the increasing desire for protection against unforeseen expenses.
