residential service contract
Also found in: Acronyms.
residential service contractAn insurance policy that will cover repair or replacement of major home systems,such as plumbing,heating,air conditioning,or electrical.Either the buyer or seller can purchase the contract, although sellers usually do so as an incentive for a buyer to purchase that property rather than another.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.