'Montana Real Estate Practice Exam 2025 – Comprehensive All-in-One Guide for Success!'

A buyer would typically need a home warranty when purchasing a property with aging systems due to the inherent risks associated with older infrastructure. As systems such as heating, plumbing, and electrical may have already been in use for a significant amount of time, there is a greater likelihood that they may require repairs or replacements in the near future. A home warranty can provide peace of mind by covering potential costs associated with these unexpected repairs, helping to mitigate financial risks that might arise from purchasing an older home.

In contrast, newly constructed homes often come with their own warranties from the builder, which may cover many issues for a set period of time, making additional home warranties less necessary. Receiving a gift of property typically does not involve a purchase transaction that would warrant the need for a home warranty, as there is no financial investment by the recipient in the same way a buyer invests in a property purchase. Leasing a property shifts the responsibility for major repairs and system maintenance to the landlord, thus making a home warranty unnecessary for a tenant in that scenario.