A warranty is the documented guarantee that a product or service manufacturer offers as a sign of the promise of the service. Based on this, the buyer of the product or service can get service for the purchase, on account of damage or another for free of cost as mentioned in the warranty details. Each product has varying warranty periods; customers should check it in writing while purchasing it.
Warranties are mainly exceptions that limit certain conditions in which the manufacturer is liable to rectify or replace a damaged item. If there are limited warranties, some vendors also offer extended options. The extended service is usually available in an insurance policy, and the coverage and fees vary from company to company.
There are two types of warranties, and they are implied and expressed. Each subcategory has its own set of warranty, guarantees, and conditions. It is applicable depending on the service or product that one purchase.
1. Express warranty – It is an express warranty from the seller to the buyer on certain specifications. The seller will repair or replace the defective item if there are defects. The express warranty is available either verbally or written. But one should not confuse it with exaggerated statements used during advertisements.
2. Implied Warranty – It is not required to be expressed to make it valid. It is implied unless excluded. It mainly goes for items that are intended to fulfil some specific purpose.
In this regard, special warranties are applicable in real estate. It implies real estate transactions in which a seller will issue a guarantee for the defects at the time of property ownership. In the transfer of a deed, there is an expressed warranty about the property title.
The warranty deed is mainly applicable for property owners, when there is a change in ownership. It also assures the buyer that the propertys title is free of liens, claims, and encumbrances. Therefore, the main idea of the warranty in real estate is to ensure that the current owner is free from mortgages, unpaid lines, or any legal obligations that may come against him. This is why one should do thorough background checks when buying properties, know the sellers details, and find unpaid liens.
The deed transfers the property from one person to another in case of handling real estate deals. A general warranty is the highest form of protection that a person gets. However, warranty deeds are often used when a person is trying to secure a loan with title insurance or property mortgage.
