Before you read
Test yourself first: 5 questions
Question 1 of 5
A property manager defers routine HVAC inspections to save money, and a unit later suffers major damage from a preventable failure. This failure most directly reflects a breakdown in which area?
Answer: B. Preventive maintenance is a key risk-management function in property management; neglecting it increases the likelihood of costly losses and potential liability to the owner and tenants.
Question 2 of 5
A grantor wants to convey property but warrant the title only against defects that arose during the period the grantor owned it, not before. Which deed accomplishes this?
Answer: A. A special warranty deed limits the grantor's warranties to defects that arose only during the grantor's period of ownership, not to any earlier title problems.
Question 3 of 5
Which deed contains NO warranties of title and simply conveys whatever interest, if any, the grantor may have in the property?
Answer: C. A quitclaim deed carries no covenants or warranties; it transfers only whatever interest the grantor actually holds, which may be nothing.
Question 4 of 5
A title company discovers an old recorded easement that was never released. The seller's daughter, who inherited the property, is unsure whether she even has clear title and wants to convey only her possible interest with no liability. Which deed is most appropriate?
Answer: B. When a grantor is uncertain of the extent of her interest and wants to avoid any title liability, a quitclaim deed conveys whatever interest she has without warranties.
Question 5 of 5
A buyer purchases a 1972 home. The sales contract lacked the lead-based paint disclosure and EPA pamphlet. What is the legal consequence?
Answer: C. Pre-1978 housing requires the federal lead disclosure package. Violations bring federal fines (per violation) and civil exposure — including treble damages in knowing violations. Actual presence of lead isn't the trigger; the missing disclosure is.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Buyers should attend; agents should provide names of several inspectors, not just one favorite. A HOME WARRANTY (residential service contract) is insurance-like coverage for systems and appliances that fail AFTER closing, often paid by the seller as a sweetener. Neither substitutes for the seller's disclosure duties, and an inspection contingency — not the inspection itself — is what gives the buyer negotiating leverage.
Home Inspections vs Warranties: FAQs
Is Home Inspections vs Warranties on the real estate exam?
Yes. Disclosures & Environmental is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
