Georgia Correctional Officer (CO) Practice Exam

If a Licensee issues an OGWIIReport on a structure with an active WDO warranty, what is their obligation regarding the warranty?

1. They must transfer the warranty to the new owner.

2. They must cancel the warranty.

3. They are not obligated to transfer the warranty.

4. They can offer a new warranty only.

The correct answer is: They are not obligated to transfer the warranty.

The correct answer highlights that if a licensee issues an OGWII report on a structure with an active Wood-Destroying Organism (WDO) warranty, they have no obligation to transfer that warranty to the new owner. This is important because warranties are typically bound by terms defined by the original issuer and are not automatically transferable unless specified. In many cases, such warranties are tied to the original owner or the property itself under certain conditions, and the licensee's duty does not extend to ensuring the warranty's transfer. This ensures clarity in responsibilities when ownership changes, as the new owner may need to address the warranty separately, perhaps taking action to understand its terms and decide if they wish to pursue the same coverage. Other options might imply responsibilities that are not inherently necessary or may confuse the nature of warranties tied to real property. Transferring or canceling a warranty involves adherence to the specific terms set forth by the warranty provider, which might not be the licensee's responsibility depending on the context of the transaction. The distinct separation of these obligations emphasizes the correct functioning of warranty arrangements in real estate transactions.