How to Reset Second Hand Mac Mini?

I'm about to purchase a second hand mac mini from ebay. It's the MD387LL/A model. I've verified that it is still under the one year warranty.
How do I reset the mac mini so that:
I get a factory fresh install so it's like new
The one year warranty will be in my name/appleID
I can purchase an AppleCare extended warranty and apply it to this unit that I'm purchasing.
Any advice? Am I going to need the previous owner to do anything to it? Or can I do this on my own without their help?
Thanks!

1. To get factory fresh boot into recovery partition and reinstall the OS. See:
OS X: About OS X Recovery
2, Yes if the person delete the Mini from his profile
My Support Profile
so you can register it
Apple - Product Registration - Welcome
3.yes

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