HOME WARRANTY

Nothing kills the excitement of owning a new home like a furnace going out in a cold snap. A
home warranty can be purchased by the buyer but often a seller will offer a free warranty. 'If the
seller offers the warranty, it will actually cover the seller during the listing period,' says Sniscak.
'The warranty then transfers to the buyers for one year and all other details are the same except
its free to the buyer. Buyers can also ask the seller to pay for a warranty as part of the
negotiations.' Watch out for these home costs that often catch new homeowners by surprise.

TITLE
A title is a historical record of transactions of the property that include sales, purchases, liens,
and tax issues. A title company will perform the search and make sure the seller actually owns
the property. If an issue comes up with the title, you won't get your money from the bank to
purchase the house. 'Unfortunately, 'checking title' is often handled at an advanced stage in the
buying process when parties are often quite vested in the transaction,' says Pellegrini. 'Each party
should monitor its process and ensure that terms are included in the Purchase and Sale
Agreement that account for how most effectively to react if a problem is discovered in the
eleventh hour,' cautions Pellegrini. Look for these red flags in the final walk-through before you
sign on the dotted line.