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Adding a home warranty to the purchase contract for a resale home can do all of the following EXCEPT:

A. give the buyer peace of mind if system fails after closing.
B. lessen the seller's liability if an appliance or system fails after closing.
C. add a new home warranty of habitability.
D. lessen the liability of the seller and broker for items that may fail after closing.
E. add a new home warranty of habitability.

User Alik Rokar
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1 Answer

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Final answer:

Adding a home warranty to a purchase contract for a resale home will not create a new warranty of habitability, but it can provide peace of mind to the buyer and lessen liability for the seller and broker.

Step-by-step explanation:

Adding a home warranty to the purchase contract for a resale home can do a variety of things but it does not add a new home warranty of habitability. A warranty of habitability is an implicit guarantee that a property meets basic living and safety standards and is not something a home warranty or service contract can create or alter.

Home warranties typically give the buyer peace of mind if a system fails after closing, can lessen the seller's liability if an appliance or system fails, and may also reduce the liability of both the seller and the broker for items that fail after closing.

Adding a home warranty to the purchase contract for a resale home can provide the buyer with peace of mind if a system fails after closing. It can also lessen the seller's liability if an appliance or system fails after closing. Additionally, it can lessen the liability of the seller and broker for items that may fail after closing.

However, adding a home warranty to the purchase contract for a resale home does not add a new home warranty of habitability. The warranty primarily covers specific appliances or systems, not the overall habitability of the home.

Therefore the correct option is D. lessen the liability of the seller and broker for items that may fail after closing.

User KyleLib
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