North Dakota Real Estate Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

A home warranty primarily serves to provide coverage for repairs or replacements of home systems and appliances. This type of warranty acts as a safeguard for homeowners against the costs associated with unexpected breakdowns or malfunctions of essential household components such as heating and cooling systems, plumbing, electrical systems, and major appliances like refrigerators and ovens.

This protection is particularly beneficial for new homeowners who may encounter unforeseen issues shortly after purchasing a property. It not only brings peace of mind but can also facilitate smoother transactions, especially in real estate sales, as it assures buyers that they have backup coverage for potential problems that could arise after closing.

The other options do not accurately reflect the function of a home warranty. Home warranties do not inherently increase property value or assist in property appraisals, nor do they directly contribute to reducing closing costs. Instead, their main focus is on the maintenance and repair of key components within the home after purchase.