PSI Virginia Real Estate Practice Exam

What is the main purpose of a construction warranty program for a home?

1. To cover all costs of home purchase

2. To provide discounted repair and replacement services

3. To ensure homes are built to code

4. To protect against market fluctuations

The correct answer is: To provide discounted repair and replacement services

The main purpose of a construction warranty program for a home is to provide discounted repair and replacement services. This type of warranty generally covers various aspects of a home, ensuring that homeowners have access to necessary repairs for issues that may arise due to construction defects or material failures within a specified timeframe after the home is purchased. These warranties give homeowners peace of mind, knowing that if there are significant issues with the structure or systems of their new home—like plumbing, electrical, or structural concerns—they can receive professional assistance to address these problems without bearing the full financial burden. This service-oriented function is critical in maintaining the value of the home and enhancing the overall homeowner experience. The other options focus on aspects that are not the primary goal of a construction warranty program. For instance, while ensuring homes are built to code is critical for safety and legality, this responsibility primarily falls on builders and local building regulations, not the warranty itself. Similarly, protecting against market fluctuations and covering all costs of home purchase are unrelated to the purpose of warranties, which center on the functional integrity of the home rather than financial investment protections.