Question 35

A home warranty may be paid for by the seller.

A home warranty offered to a purchaser as a condition for signing a contract to buy a listed property is typically paid for by the seller. This practice is common as it can make the property more attractive to potential buyers by providing them with added assurance regarding the condition of the home.

A) listing broker

The listing broker generally represents the seller in a real estate transaction and does not typically pay for home warranties unless otherwise agreed upon. Their primary role is to facilitate the sale and provide services to the seller.

B) selling broker

The selling broker represents the buyer in a transaction and is not responsible for paying for the home warranty. Their focus is on ensuring that the buyer's interests are being represented, which does not include financial obligations related to the seller's property.

C) seller

The seller is responsible for paying for the home warranty in this context. By offering a home warranty, the seller adds value to the property and enhances buyer confidence, which can facilitate the sale.

D) listing salesperson

The listing salesperson, who works under the listing broker, does not typically bear the cost of the home warranty. Their role is to assist in the sale process, but financial responsibilities lie with the seller or the brokerage.

Conclusion

The seller's responsibility for paying for the home warranty is a strategic decision aimed at promoting the sale of the property. Other options such as the listing broker, selling broker, and listing salesperson do not align with the financial obligations related to the warranty in this context, making the seller the definitive correct answer.