A seller may add to a deed a covenant of further assurances, which promises that the seller will take any steps necessary to satisfy any claims to the property. Sellers and buyers of real estate may negotiate warranties regarding the title to the property. They also may negotiate additional warranties regarding the property, such as warranties on plumbing or electricity or any other matter of special concern. If the seller of real estate is the same party who constructed a building on the property, a warranty of habitability may be automatically included in a sale of the property. A warranty of habitability in the context of a sale of real property is a promise that the dwelling complies with local building codes, was built in a professional manner, and is suitable for human habitation.
Warranties also accompany leases of real property.
All states, through either statutes or court decisions, require landlords to observe the warranty of habitability in leases of residential property. In this context the warranty of habitability is a promise that the premises comply with all relevant building codes and that they will be properly maintained and will be fit for habitation throughout the period of the tenancy. Specifically, the landlord promises to make necessary repairs in a prompt and reasonable fashion and to provide such basic services as water, heat, and electricity. If a landlord breaches the implied warranty of habitability, the tenant may withhold rent and sue for any financial losses resulting from the breach. Insurance A warranty in an insurance policy is a promise by the insured party that statements affecting the validity of the contract are true.