Where this fits on the exam
| Official syllabus topic | Home and New-Construction Warranties |
|---|---|
| Official PSI area | Transfer of Title |
| Published area weight | 6% of the national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
The lesson
Express warranty
Read coverage period, covered components, standards, exclusions, notice, builder access, repair process, dispute procedure, transferability, and remedies.
Implied obligations
Law may recognize implied duties for new construction or habitability in specified circumstances. Scope, waiver, parties, and limitation periods vary by jurisdiction.
Inspection and punch list
Preclosing inspections and punch lists identify incomplete or defective work but do not automatically extend warranty deadlines or replace independent professional evaluation.
Separate protections
Title warranties address ownership and encumbrances. Property insurance addresses covered losses. A home warranty or service contract handles defined repair events and exclusions.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A buyer discovers defective tile installation after closing and asks whether the general warranty deed pays for repair.
Reason it through. A general warranty deed protects specified title covenants, not construction workmanship.
Answer. Review the builder's express warranty, applicable implied rights, inspection evidence, and notice deadlines instead.
Common exam traps
- Confusing title warranty with home warranty
- Assuming punch list is the whole warranty
- Ignoring notice deadlines
- Promising coverage before reading exclusions
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Six months after closing, the buyer of a new home finds the tile was installed badly and asks whether the seller's general warranty deed pays for the repair. What should the buyer review instead?
- A. The owner's title insurance policy
- B. The lender's title insurance policy
- C. The deed's covenant of quiet enjoyment
- D. The builder's express warranty and deadlines
Show answer and explanation →
Answer: D. The builder's express warranty and deadlines
A general warranty deed makes promises about title, not workmanship, so defective tile falls outside it. The builder's written warranty, any implied rights, and the notice deadlines govern the repair. Title insurance is also a title protection, which makes it the plausible but wrong place to look.
- A. Incorrect. An owner's title policy covers specified title defects, rather than poor tile installation.
- B. Incorrect. The lender's title policy protects its security interest, not the buyer's construction repairs.
- C. Incorrect. Quiet enjoyment in a deed is a title covenant, not a promise of construction quality.
- D. Correct. The builder's warranty terms, relevant legal rights, and notice deadlines address workmanship claims.
Question 2A buyer and builder complete a punch list at the final walk-through of a new home. What does the punch list do?
- A. It replaces the builder's written warranty
- B. It identifies unfinished or defective work
- C. It extends each warranty deadline by a year
- D. It serves as the buyer's home inspection
Show answer and explanation →
Answer: B. It identifies unfinished or defective work
A punch list records incomplete or defective items before closing. It does not replace the express warranty, extend its deadlines, or substitute for an independent inspection, so treating it as the whole warranty is the trap.
- A. Incorrect. The list of unfinished items does not replace the separate written warranty and its terms.
- B. Correct. The punch list records work needing completion or correction at the walk-through.
- C. Incorrect. Writing an item on the list does not automatically extend all warranty deadlines.
- D. Incorrect. A walk-through punch list does not provide the scope or expertise of an independent inspection.
Question 3After closing on a resale home, the buyer's water heater fails. The seller bought the buyer a one-year home warranty. Which protection most directly applies?
- A. The seller's general warranty deed
- B. The owner's title insurance policy
- C. The home warranty service contract
- D. The builder's implied warranty
Show answer and explanation →
Answer: C. The home warranty service contract
A home warranty is a service contract that covers defined repair events, such as a failed system, under its own terms and exclusions. Deed covenants and title insurance protect ownership, not appliances, and the buyer should still read the contract's exclusions before assuming coverage.
- A. Incorrect. A warranty deed makes title promises, rather than paying for a failed appliance.
- B. Incorrect. Title insurance does not cover the physical failure of a water heater.
- C. Correct. The service contract is the relevant protection, with coverage subject to its terms, limits, and exclusions.
- D. Incorrect. The facts describe a resale with a purchased home warranty, not a stated claim against a builder.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Home and New-Construction Warranties in one clear answer without notes.
- Separate Express warranty from Implied obligations using a fresh example.
- Apply the decision rule to a new fact pattern and name the fact that controls the result.
- State the Georgia-specific point or explain why the national rule applies unchanged.
- Answer every practice question and explain the rule each rejected option misapplies.
- Revisit this topic later in mixed practice without category labels.
Recommended next lesson
Continue with Foreclosure, Short Sale, and Probate Transfers. Next, special transfers covers sales that need someone else's approval or authority to close, such as a short sale the lienholder must approve and a probate sale signed by a personal representative.
Return to the Transfer of Title hub to see every official branch and the complete lesson sequence for this content area.