Warranty Transfers at Closing: What Actually Transfers to the Buyer

Part of our selling series: the full document framework lives in The Complete Seller's Document Checklist. This post covers the specific category sellers routinely leave value on the table with.

When you sell a home, several types of warranties may or may not transfer to the new owner. Some transfer automatically. Some require paperwork and fees. Some simply end the day you close. Most sellers either don't know the difference or don't bother to find out — and lose a real value-add from the buyer's perspective as a result.

Here's what's actually involved in each major category of home-related warranty at sale, how to transfer what can be transferred, and how to turn warranties into a marketing asset for your listing.

The Five Categories of Home Warranties

Home warranties at sale fall into five categories, each with different transfer rules:

• Builder warranties (for newer construction)
• Roof warranties (materials and labor, often 25–50 years on modern roofs)
• HVAC and major system warranties (typically 5–10 years from install)
• Appliance warranties (shorter — typically 1–10 years)
• Third-party home warranty service contracts (often sold at closing)

Each works differently.

Builder Warranties

New construction typically comes with a builder's structural warranty — often 1-2-10 format:

• 1 year on workmanship and materials
• 2 years on systems (plumbing, electrical, HVAC)
• 10 years on major structural defects

Transferability

Most builder warranties are transferable to subsequent owners for the remaining term, but:

• Paperwork is required — typically a transfer form submitted within 30–60 days of closing
• Transfer fees may apply — often $50–$500
• The buyer must be notified of the warranty's existence — some warranties void if the buyer doesn't know about them

If you bought new construction and are selling within the 10-year structural window, this is potentially a five-figure value-add for the buyer. Locate the builder's warranty documentation before listing.

What to Do

• Find the original warranty booklet (usually delivered at new-home closing)
• Contact the builder to confirm the warranty is still active and transfer-eligible
• Obtain a transfer form or instructions
• Include the warranty information in your disclosure package
• Complete the transfer within the required window post-closing

Roof Warranties

Modern roofing materials come with manufacturer warranties that can run 25, 30, or even 50 years on premium architectural shingles or metal roofs. These are separate from any contractor workmanship warranty.

Transferability

Roof warranties split into two types:

Limited lifetime warranties: Often stated as "lifetime" but actually prorated after year 10 or 15. They generally do transfer to subsequent homeowners but:

• Transfer window is limited — often 30–60 days from closing
• Transfer fee applies — often $25–$50
• Written notice to manufacturer is required
• Some transfer only once (to the second owner, not beyond)

Non-transferable warranties: Some manufacturers (especially on older roofs) offer warranties that are good only for the original homeowner. These end at sale.

What to Do

• Locate the original roof installation documents and warranty certificate
• Contact the manufacturer directly (not the installing contractor) to confirm transfer eligibility
• Identify the transfer window and cost
• Include this in your disclosure package and marketing — a transferable 30-year roof warranty on a 5-year-old roof is legitimately valuable

The Workmanship Portion

Separate from the material warranty, your roofing contractor may have offered a workmanship warranty (typically 5–10 years). These are harder to transfer — most contractors consider them relationship-based rather than property-based. Ask. Some contractors will honor workmanship warranties for the new owner as a gesture; others won't.

HVAC and Major System Warranties

HVAC manufacturers typically offer:

• Parts warranty (often 5–10 years from install, sometimes longer on premium equipment)
• Compressor warranty (on AC systems — often 10 years)
• Heat exchanger warranty (on furnaces — often 20 years or limited lifetime)

Transferability

HVAC warranty transferability varies significantly:

• Registered warranties: Most manufacturers require online registration within 60–90 days of install to get full warranty length. Unregistered warranties may default to a shorter term (often 5 years). The transferability of the remaining term often requires a formal transfer with the manufacturer.
• Installation labor warranties: From the installer, typically 1–2 years, usually non-transferable.
• Extended warranties: Often transferable for a fee.

What to Do

• Locate HVAC install receipts and warranty registration confirmations
• Contact the manufacturer to verify:

- Is the warranty still active?

- Is it registered to the original install date?

- What's the remaining term?

- Is transfer permitted? What's the process and cost?

• Include confirmation in your disclosure package

The water heater, tankless water heater, and whole-home water filtration follow similar patterns — registered warranties, specific transfer processes, manufacturer-by-manufacturer variation.

Appliance Warranties

Appliance warranties (dishwasher, range, refrigerator, washer/dryer, microwave) are generally short:

• Manufacturer's original warranty: 1 year is standard, longer on premium brands
• Extended warranties sold at purchase: 3–5 years typically

Transferability

Manufacturer's original 1-year warranties are typically transferable in the sense that the appliance itself transfers — the warranty follows the appliance, not the owner. If the appliance is still within the 1-year window at closing, the buyer gets the remainder.

Extended warranties and service plans are hit-or-miss:

• Some transfer automatically with the appliance
• Some require written notification to the warranty provider
• Some are tied to the original purchaser and don't transfer

What to Do

• Identify appliances still under any form of warranty
• Gather receipts and warranty documentation
• Include in the conveyance documents at closing
• Mention in the listing package — buyers value "new refrigerator, full 1-year warranty transferring with sale"

Third-Party Home Warranty Service Contracts

Home warranty companies (AHS, Choice Home Warranty, 2-10, First American, etc.) sell service contracts — not insurance — that cover specific systems and appliances for an annual fee.

These often get offered at closing as a seller-paid benefit to the buyer. Some sellers include this as a marketing tool:

• Seller-paid first-year coverage: Seller buys the buyer a 1-year home warranty service contract as part of the transaction.
• Buyer-paid coverage: Buyer purchases themselves.

These are service contracts, not transfers — the buyer holds a fresh contract starting at closing.

Should You Include One?

Trade-offs:

Pro: Gives the buyer peace of mind for common issues (HVAC failure, appliance breakdown). Cost is typically $400–$700 for a year. Con: Third-party home warranty companies have mixed reputations. Coverage is limited, payouts are limited, and many specific repairs require the consumer to pay significant deductibles.

My general take: they're worth more as a marketing tool than as an actual financial product. A home warranty on a 15-year-old HVAC system may not pay out meaningfully if the system fails catastrophically.

What to Include in Your Disclosure Package

At listing, compile a warranty summary document with:

• List of every active warranty on the home
• Original install date and warranty start date
• Remaining term as of listing
• Transfer eligibility and process
• Manufacturer contact information
• Warranty certificate or registration confirmation (photocopy)

A homeowner who hands a buyer a clean warranty summary is meaningfully more credible than one who shrugs when asked. Warranties are a small but real trust signal in the transaction.

How to Turn Warranties Into a Marketing Advantage

For high-value warranties specifically (roof, HVAC, builder):

• Call it out in the listing description
• Mention transferability and remaining term
• Provide documentation in the disclosure package or as part of "additional materials"
• Offer to walk the buyer's agent through the warranty transfer process

A 5-year-old roof with a 25-year transferable warranty is legitimately a $10,000+ value for the buyer who doesn't have to roof the home for another 20 years.

The Common Documentation Failure

The single most common failure: sellers don't know what warranties exist. They bought the home 8 years ago, the previous owner installed the HVAC, there's some paperwork in a drawer — but no one has tracked what's active, what's registered, or what transfers.

Which means: at sale, either

• The seller claims "the roof has a lifetime warranty" without documentation to support transfer (loses credibility), or
• The seller under-represents what's actually available (leaves value on the table)

DwellRecord tracks every warranty — appliance, HVAC, roof, builder — with expiration dates, transfer eligibility, and registration confirmations in one place. When you sell, you export a warranty summary as part of your disclosure package. Start your free account.

Frequently Asked Questions

What if I don't have the original warranty documents?

Contact the manufacturer directly. Most will confirm warranty status based on serial number, install date, and property address. Roof manufacturers in particular keep detailed records.

Does the contractor's workmanship warranty pass to the new owner?

Usually not automatically. Contractors may honor it informally, but it's typically tied to the original customer relationship.

Can I transfer a warranty after closing if I forgot at closing?

Depends on the warranty's transfer window. Many have strict 30–60 day post-closing deadlines. After that, the warranty may be void for the new owner.

Does selling void my existing home warranty service contract?

Third-party service contracts (AHS, etc.) generally do not transfer — you should cancel and get a prorated refund, and the buyer purchases fresh if they want coverage.

Do transferable warranties increase home value?

Marginally, yes, especially for big-ticket items. A transferable roof warranty on a recent roof is worth something. It's rarely a large factor in appraised value, but it's a real differentiator during buyer evaluation.

Related Guides

• The Complete Seller's Document Checklist — cluster hub.
• What Documents Do You Need When Selling Your House? — everyday-language spoke.
• Seller Disclosure Requirements by State — what you must disclose at sale.
• How to Pass a Pre-Listing Home Inspection — complementary prep work.

The Bottom Line

Warranties at home sale are worth real money and don't cost anything to pass along — but they don't pass themselves. Identify what's active, understand each warranty's transfer rules, and include the paperwork in your disclosure package. Buyers value the credibility. Your closing goes faster. And your eventual satisfaction with the sale is higher because you didn't accidentally leave thousands of dollars of warranty value on the table.