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National curriculum lesson 110 · Transfer of Title

Home and New-Construction Warranties

A construction warranty concerns the quality, workmanship, systems, or performance of the home. An express warranty states written promises and procedures; an implied warranty may arise by law. A service contract covers specified repairs under separate terms. These protections are different from deed covenants, which concern title, and from insurance, which transfers defined risks.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

A construction warranty concerns the quality, workmanship, systems, or performance of the home. An express warranty states written promises and procedures; an implied warranty may arise by law. A service contract covers specified repairs under separate terms. These protections are different from deed covenants, which concern title, and from insurance, which transfers defined risks.
Official syllabus mapping for Home and New-Construction Warranties
Roadmap lesson110 of 500
Official syllabus topicHome and New-Construction Warranties
Official PSI areaTransfer of Title
Published area weight6% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Last verifiedAugust 2, 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.

Complete lesson

Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.

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

Identify whether the complaint concerns title, construction quality, a covered casualty, or a service-contract component.

Georgia-specific distinction

Georgia law and the actual builder contract determine new-home warranty and claim rights. A Georgia licensee should preserve documents and deadlines, recommend inspections, and avoid promising that a builder or warranty company must cover a condition.

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 1

What does a general warranty deed principally warrant?

  1. A. Title
  2. B. Appliance performance
  3. C. Roof life
  4. D. Energy cost
Show answer and explanation →

Answer: A. Title

Deed covenants concern the grantor's title promises rather than home workmanship.

Question 2

Is a service contract the same as property insurance?

  1. A. Yes
  2. B. No
  3. C. Only for HVAC
  4. D. Only in new construction
Show answer and explanation →

Answer: B. No

They have different covered events, regulation, exclusions, pricing, and remedies.

Question 3

What should a buyer check first in an express builder warranty?

  1. A. Coverage, exclusions, procedure, and deadlines
  2. B. Broker's guess
  3. C. Neighbor's warranty
  4. D. Zoning map
Show answer and explanation →

Answer: A. Coverage, exclusions, procedure, and deadlines

The actual written terms determine the promised protection and claim process.

Mastery tracking

Mark this lesson mastered only when every statement is true.

  • State the direct answer and decision rule without notes.
  • Explain every core concept in plain English.
  • Solve the worked example after changing one important fact.
  • Identify the Georgia distinction before reading answer choices.
  • Answer all three questions correctly and reject every distractor.
  • Repeat the topic in mixed practice on a later day.

Recommended next lesson

Continue with Foreclosure, Short Sale, and Probate Transfers. Continue to roadmap lesson 111 and build on this decision rule.

Return to the Transfer of Title hub to see every official branch and the complete lesson sequence for this content area.

Home and New-Construction Warranties questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Home and New-Construction Warranties on the Georgia real estate exam?

Yes. It belongs to PSI's Transfer of Title content area, which is 6% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Home and New-Construction Warranties?

Identify whether the complaint concerns title, construction quality, a covered casualty, or a service-contract component.

What Georgia-specific distinction should I remember?

Georgia law and the actual builder contract determine new-home warranty and claim rights. A Georgia licensee should preserve documents and deadlines, recommend inspections, and avoid promising that a builder or warranty company must cover a condition.

How do I know I have mastered this lesson?

Explain the rule without notes, solve the worked example again with changed facts, answer all original questions correctly, explain every distractor, and repeat mixed practice on a later day.