Residential Builder's Salesperson Exam 2025 – 400 Free Practice Questions to Pass the Exam

Implied warranties refer to the unspoken and unwritten guarantees that are generally assumed to exist in a transaction. These warranties are established by law and do not need to be explicitly stated or communicated by the seller to the buyer.

In the context of residential building and sales, consumers expect that a product—such as a home or renovations—will meet certain basic standards of quality and fit for purpose, even if these promises are not formally articulated in a written contract. For example, an implied warranty of habitability ensures that a home is livable and safe, which is inherently expected when purchasing or leasing a home.

On the other hand, explicit warranties are formally detailed and clearly outlined in a contract. Limited warranties usually specify certain conditions or time frames under which a product or service is covered, and performance warranties often relate to specific levels of performance that must be met. While these types of warranties have their place, they are not the types that consumers typically assume without them being explicitly stated, unlike implied warranties. Thus, the correct answer highlights the nature of consumer expectations in relation to the protection ensured by law without the necessity for clear written documentation.