Can You Transfer Home Warranty When Selling House? Key Facts

You have just accepted an offer on your home, and the buyer asks about the home warranty policy you purchased years ago. Maybe you are the buyer, wondering if that coverage can carry over without buying a new plan. This question,can you transfer home warranty when selling house,comes up in nearly every real estate transaction. Many homeowners assume the policy dies with the sale, but that is not always true. Understanding how transfers work can save you money, reduce stress, and even make your listing more attractive. Ignoring the details, however, can leave you paying for coverage you no longer need or leave the new owner without the protection they expect.

Understanding Can You Transfer Home Warranty When Selling House

A home warranty is a service contract that covers repairs or replacements of major home systems and appliances,things like your HVAC, water heater, refrigerator, and electrical system. Unlike homeowner’s insurance, which covers damage from disasters, a warranty covers breakdowns from normal wear and tear. The question of whether you can transfer that warranty to a new owner depends entirely on the terms set by the warranty company.

Most major home warranty providers allow a one-time transfer from seller to buyer within a specific window,often 30 days before or after closing. Some companies charge a small transfer fee (typically $25,$75), while others include the transfer at no cost. A few policies are non-transferable, meaning the contract ends when the property title changes hands. The homes most affected are those with older systems or appliances, where the warranty has been renewed multiple times and the coverage is nearing its expiration.

Why This Matters for Your Home

Understanding transfer rules protects your wallet and your peace of mind. If you are selling, a transferable warranty can be a powerful marketing tool,buyers see it as a safety net that reduces their risk of unexpected expenses in the first year. If you are buying, knowing whether the seller’s warranty transfers can save you the cost of purchasing a separate policy right away.

On the flip side, failing to address the transfer can create problems. Sellers who cancel their policy before closing may leave buyers unprotected, leading to last-minute renegotiations. Buyers who assume the warranty transfers without verifying may face thousands of dollars in uncovered repairs. Over time, ignoring the fine print can lead to increased out-of-pocket costs and frustration.

If you notice signs of this issue in your home, it may help to speak with a qualified contractor. Request a free quote or call to explore your repair or remodeling options.

Common Problems Homeowners Experience

Homeowners often run into confusion when they try to transfer a warranty without reading the contract carefully. The most frequent issue is assuming all policies are transferable, only to learn the coverage lapses at closing. Another common problem is failing to notify the warranty company within the required timeframe,some companies require written notice 10 to 14 days before closing.

Real-world examples include a seller who paid for a full year of coverage but moved out after six months, expecting the buyer to benefit. The warranty company refused the transfer because the seller missed the deadline, leaving the buyer with no coverage. In another case, a buyer discovered that the “transfer” only applied to the seller’s remaining term, not a full renewal, resulting in a shorter coverage period than expected.

• Policy states “non-transferable” in the fine print
• Transfer request submitted after the deadline
• Warranty company charges a fee the seller did not expect
• Coverage excludes certain appliances the buyer assumed were included
• Transfer only applies to the remaining term, not a full year
• Seller cancels the policy before closing without the buyer’s knowledge

How Professionals Solve the Problem

Real estate agents, title companies, and home warranty specialists handle the transfer process smoothly. A good agent will include the transfer terms in the purchase agreement, specifying who pays the fee and how the warranty continues. If the policy is non-transferable, they can arrange for the buyer to purchase a new plan that starts on the closing date.

1. Review the current warranty contract for transfer language and deadlines.
2. Contact the warranty provider to confirm the transfer process and any fees.
3. Include the transfer details in the purchase agreement or addendum.
4. Notify the warranty company in writing before the closing date.
5. Confirm the transfer is complete and provide the buyer with new policy documents.

Working with a professional is safer than handling it yourself because missing a single step,like a deadline or fee,can void the transfer. DIY attempts often lead to gaps in coverage or disputes after closing. For more context on why a home warranty matters, see our guide on 7 reasons why homeowners in Illinois need a home warranty.

A professional inspection can reveal hidden issues before they become expensive repairs. Compare contractor quotes here or call to discuss your project.

Warning Signs You Should Not Ignore

Whether you are buying or selling, certain red flags should prompt you to act quickly. If the seller cannot provide a copy of the warranty contract, that is a warning sign. Similarly, if the warranty company says the policy is “expired” or “non-renewable,” you need to investigate further. Delaying can lead to a gap in coverage that leaves you paying full price for repairs.

• Seller cannot produce a copy of the warranty contract
• Policy expiration date falls before the closing date
• Warranty company has no record of the policy under the seller’s name
• Contract language includes “non-transferable” in bold
• Transfer deadline is within a few days and you have not submitted the request
• Buyer assumes coverage but has not received written confirmation

What Affects the Cost of Repairs or Installation

If you decide to buy a new home warranty as a buyer or renew one as a seller, several factors influence the price. The age of the home plays a big role,older homes with older systems typically cost more to cover. The number of appliances and systems included also affects the premium. Basic plans start around $300,$500 per year, while comprehensive plans with add-ons can exceed $800.

Location matters too. In areas with higher labor costs, warranty premiums tend to be higher. The type of coverage,like whether it includes roof leaks or septic systems,adds to the cost. Finally, the deductible amount you choose can lower the annual premium but increase your out-of-pocket cost per service call.

Costs can vary depending on the condition of your home. The best way to know the price is to get a personalized estimate. Request free quotes from contractors or call today.

How to Choose the Right Contractor

When you need repairs covered by a warranty, choosing the right contractor is critical. Warranties often require you to use pre-approved service providers, but for non-warranty work, you have more freedom. Look for contractors who are licensed, insured, and have experience with the specific system or appliance needing repair.

• Verify the contractor’s license and insurance with your state board
• Read recent online reviews on platforms like Google or Angi
• Ask for a detailed written estimate before work begins
• Compare at least three quotes to ensure fair pricing
• Confirm the contractor has experience with your specific issue (e.g., HVAC, plumbing)

Long-Term Benefits of Professional Work

Investing in professional warranty management or repairs pays off over time. Properly maintained systems last longer, reducing the need for frequent replacements. A home with a transferable warranty also appeals to future buyers, potentially increasing resale value. Energy-efficient repairs,like fixing an old furnace or sealing ductwork,lower monthly utility bills.

Professional work also ensures safety. Faulty wiring, gas leaks, or water damage can lead to fires or structural issues if left unaddressed. By handling repairs correctly the first time, you avoid the cycle of temporary fixes that cost more in the long run. For example, a homeowner who ignored a small plumbing leak ended up with mold remediation that cost five times the original repair. If you are in a state like Colorado, check out our guide on how to choose the right home warranty in Colorado for state-specific tips.

Can I cancel my home warranty after I sell my house?

Yes, you can cancel your home warranty after selling your house, but you should do so only after confirming the transfer or expiration. If you cancel before the buyer assumes ownership, you may violate the purchase agreement. Contact your warranty provider to understand the cancellation policy and any refund you may receive.

Does a home warranty transfer automatically to the new owner?

No, a home warranty does not transfer automatically in most cases. The seller or buyer must notify the warranty company in writing and pay any applicable transfer fee. Always check the contract and confirm with the provider before assuming the transfer will happen.

Can a buyer purchase a new home warranty at closing?

Yes, buyers can purchase a new home warranty at closing or even before. Many real estate agents recommend including the cost of a one-year warranty as a closing cost negotiation. This gives the buyer immediate coverage without relying on the seller’s existing policy.

What happens if the seller’s warranty expires before closing?

If the seller’s warranty expires before closing, the coverage ends and does not transfer. The buyer will need to purchase a new warranty if they want protection. To avoid this gap, both parties should check the expiration date and coordinate a new policy start date.

Are home warranties worth it for sellers?

Yes, home warranties can be worth it for sellers because they make the property more attractive to buyers. A warranty reduces the buyer’s fear of immediate repair costs, which can help you sell faster and potentially at a higher price. Many agents include a warranty as a standard part of the listing package.

Can I transfer my home warranty to a different property?

Some home warranty companies allow you to transfer coverage from one property to another, but this is different from transferring to a buyer. Typically, you cancel the policy on the sold home and start a new policy on the new property. Ask your provider if a “relocation transfer” is available.

What does a home warranty typically cover?

A standard home warranty covers major systems like HVAC, plumbing, electrical, and water heater, plus major appliances like refrigerator, oven, dishwasher, and washer/dryer. Optional add-ons may cover pools, septic systems, or well pumps. Read the contract carefully because exclusions vary by company.

How do I file a claim under a transferred warranty?

To file a claim under a transferred warranty, the new homeowner must confirm the transfer is complete and then contact the warranty provider directly. The company will assign a pre-approved service contractor. The homeowner pays a service fee (usually $75,$125) per claim, and the warranty covers the rest.

Whether you are selling, buying, or staying put, knowing how home warranty transfers work helps you protect your investment and avoid surprises. If you are unsure about your current policy or need help with repairs, the smartest step is to compare professional options early. Request free quotes from contractors or call to get started. For homeowners in Virginia, you may also find value in our overview of Virginia home warranty plans.