GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Warranty


Synonyms:guarantee, pledge, surety
Filed Under: financial-banking, legal-contracts, real-estate
Tags: banking, contract, legal, realty
 

Definition of warranty

warranty
1. In real estate, warranty refers a document certifying clear title a property.
2. A guarantee given by a company to the purchaser which states that a product is reliable and free from known defects and that the seller will, without charge, repair or replace defective parts within a given time limit and under certain conditions.

Related Terms and Acronyms:

  • breach of warranty   A determination that a seller cannot pass clear title of property to a buyer.
  • certificate of title   A written document stating that the title to a piece of property is legally vested in the present owner.
  • extended warranty   A service contract that covers certain vehicle repairs or problems after the manufacturer's or dealer's warranty expires. Extended warranties are sold by vehicle manufacturers, dealers, and independent companies. With a new vehicle, the extended warranty must be purchased by the end of the first year of ownership.
  • guarantee   An enforceable warranty on the promise of quality of a product or formal promise by one person to take responsibility for the debts or obligations of another person if that person fails to meet them.
  • home warranty   A policy that guarantees workmanship on construction of a home and functionality of some appliances, and which pays for repairs for a specified period.
  • service contract   Also known as extended warranty. A contract that covers certain car repairs or problems after the manufacturer's or dealer's warranty expires. Extended warranties are sold by car manufacturers, dealers and independent companies. With a new car, the extended warranty usually must be purchased by the end of the first year of ownership.
  • title   Evidence of a person's right to possession ownership of a property.

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