Question 90

A home warranty may be paid for by the seller.

In real estate transactions, it is common for the seller to offer a home warranty to the purchaser as an incentive to buy. This warranty protects the buyer against potential repair costs for certain home systems and appliances, and the seller typically covers this expense to enhance the attractiveness of their property.

A) listing broker

The listing broker is responsible for marketing the property and facilitating the sale, but they do not directly pay for a home warranty unless it is agreed upon in the terms of the listing. Their role is not to cover such costs, making this option incorrect.

B) selling broker

The selling broker represents the buyer in the transaction and typically does not pay for a home warranty. Their focus is on negotiating the sale and ensuring the buyer's interests are met, thus making this option incorrect.

C) seller

The seller is the party most commonly responsible for paying for a home warranty in real estate transactions. By offering this warranty, the seller can make their property more appealing to potential buyers, which is why this option is correct.

D) listing salesperson

The listing salesperson is an agent who works under the listing broker and does not have the authority to pay for a home warranty independently. Their role is to assist with the sale, but they do not typically incur costs associated with warranties, rendering this option incorrect.

Conclusion

The seller is typically the one who pays for a home warranty offered to the purchaser, as it serves to make the property more attractive and alleviate buyer concerns about future repairs. The other options—listing broker, selling broker, and listing salesperson—do not align with the responsibility of covering warranty costs, making them incorrect in this context.