Home warranty
A yearly service contract that helps pay to repair or replace covered systems and appliances. It is not homeowners insurance and usually has service fees and exclusions.
Also called: home protection plan, residential service contract
Related terms
A policy covering the home and belongings against damage such as fire or wind, plus liability. Lenders require it before closing. Standard policies do not cover flood, and often not earthquake.
A visual check of a home's structure and systems by a trained inspector, usually during the buyer's contingency period. It finds problems before you're locked in; it is not a pass or fail test.
Money the seller agrees to put toward the buyer's closing costs, prepaid items or rate buydown. Loan programs cap how much a seller can contribute.
A home that is newly built or still being built, usually sold by the builder. Builder contracts differ from resale contracts, and the sales rep works for the builder.