Legal information only, not legal advice.
What the Contract and State Law Say About Transfers
Transfer terms differ by company and plan, so we do not list a fee for each company. Read the transfer clause in your contract and ask the company for the current fee and deadline in writing. Two sourced state rules show what the law can add.
Florida
According to the Florida CFO's home warranty overview, a buyer can assign the contract within 15 days for a fee capped at $40.
New York
Insurance Law section 7905(j) requires a service contract to state the terms, restrictions or conditions that govern its transfer, so a New York contract must say whether and how it can be transferred.
We did not find a transfer rule in the other states we researched. Check the state laws table for your regulator.
How to Transfer a Home Warranty at Sale
- 1 Read the contract first. Find the transfer clause. It states whether coverage can be transferred, who can request it, the deadline and any fee. The contract, not a general guide, controls.
- 2 Notify the company before closing. Give the closing date, the buyer's name and contact details and the property address, and ask what documents it needs, such as a closing statement.
- 3 Get written confirmation. Ask for confirmation that the buyer is now the contract holder, with the coverage end date, the plan details, the service fee and how to file a claim.
What to Ask About Before Transferring
- Does the remaining coverage period carry over to the buyer in full?
- Does the plan, the service fee and any add-on coverage stay the same?
- Does any waiting period or pre-existing condition review restart at the transfer?
- Is there a fee, and by what date must the request be made?
Get each answer in writing. If you skip the transfer, the contract may still be in the seller's name, which can complicate a claim on a home the seller no longer owns. Handle it at or before closing.
Using a Transferable Warranty as a Selling Point
A buyer values the months remaining, the plan level, the service fee and the HVAC cap, and the company's record. State those facts accurately in the listing, for example the plan name, the end date and the service fee, and attach the contract. Do not promise coverage the contract does not provide.
To see how a seller-paid warranty works in a sale, read home warranties in real estate transactions.
Buyer Due Diligence on an Included Warranty
If you receive a seller-paid or transferred warranty, check it before closing.