Most home warranties are transferable when you sell your home. This is a meaningful feature - a warranty with remaining coverage can be a selling point that distinguishes your home in the market. Understanding how transfer works (and what it costs) matters before closing.
Legal information only, not legal advice.
A transferable home warranty means the remaining coverage period can be assigned from the current policy holder (the seller) to the new owner (the buyer). If you have 8 months remaining on your policy and sell your home, those 8 months transfer to the buyer.
Most major home warranty companies offer transferability as a standard feature. The mechanics differ - some require a formal transfer request, some charge a fee, and some transfer automatically upon recording the sale.
Transfer fees are generally modest - $0 to $75 is the typical range:
| Company | Transfer Fee | Transfer Process |
|---|---|---|
| Old Republic | $0 (many plans) | Notify company |
| AFC Home Club | $0 | Automatic at sale |
| Landmark | $0 | Notify company |
| American Home Shield | $0-$50 | Online or phone |
| 2-10 HBW | $0 | Notify company |
| Liberty Home Guard | $25-$50 | Contact customer service |
| Choice Home Warranty | $0 | Notify company |
| First American | $0-$50 | Notify company |
| Cinch | $25-$50 | Online portal |
Verify current transfer fees directly with your provider - these change.
Before closing. Contact your home warranty company and notify them of the upcoming sale. Provide the expected closing date, the buyer’s name and contact information, and the property address confirmation.
At closing. Some companies want a copy of the HUD-1/Closing Disclosure confirming the sale. Have this ready.
After closing. The warranty company updates the policy to reflect the new owner. The buyer receives confirmation of coverage including the coverage end date, service fee amount, covered systems/appliances, and contact information for filing claims.
What the buyer should receive:
If you’re the buyer and the seller offered “included home warranty,” verify you actually received a policy confirmation before or at closing.
What transfers:
What may NOT transfer:
Ask specifically: “Does any waiting period or pre-existing condition investigation period restart at transfer?” Some companies say yes; others honor the original purchase date.
A home with a transferable home warranty - especially from a company with a strong reputation - can reduce buyer anxiety about unknown system/appliance condition.
Effective marketing language: “Includes 14 months remaining coverage under [Company] Total Plan - covers HVAC, plumbing, electrical, and major appliances. $75 service fee per visit. Fully transferable to buyer.”
What makes it valuable to buyers:
If you’re a buyer receiving a seller-paid or transferred warranty, do your homework before closing:
Research the company. BBB rating, complaint volume, claim denial reputation. A worthless warranty from a company that systematically denies claims is not actually a benefit.
Understand the coverage level. What plan? What HVAC cap? What service fee? “Home warranty included” with no details may be a $37/month appliance-only plan with a $4,500 HVAC cap in a market where HVAC replacement costs $12,000.
Ask for the actual policy documents. Before closing. Not after.
Consider upgrading. If the seller-paid warranty is a basic plan, you can often upgrade coverage for the additional premium cost. Evaluate whether upgrading to a higher HVAC cap or comprehensive plan makes sense for your situation.
If you buy a home without a warranty included (or if the included warranty isn’t adequate), you can purchase a new policy. Most companies have:
No waiting period: Some companies activate coverage immediately after purchase. Others have 15-30 day waiting periods before coverage begins.
Pre-existing condition investigation: For early claims (within 30-90 days), companies may scrutinize whether a failure is pre-existing to the policy. Document system condition at purchase (home inspection report, HVAC maintenance records if available).
If you forget to transfer your warranty at closing and the new owner experiences a problem:
Handle the transfer at or before closing. It’s a 15-minute process that protects both you and the buyer.