Question: Do Warranties Transfer to New Homeowners?
Answer: Whether warranties transfer to new homeowners depends on the specific warranty. Statutory new home warranties are tied to the property and typically transfer automatically. However, manufacturer warranties for appliances and specific systems like a furnace often do not. Always verify the transferability of each individual policy before purchasing a home.
The Truth About Warranties When You Buy a Home
You have just found your dream home. You love the modern kitchen, the new roof, and the high-efficiency furnace. During the home inspection, everything looks great. After you move in, however, the dishwasher stops working. This moment brings an important question to mind. You wonder if the previous owner’s warranty can help you. The answer to do warranties transfer to new homeowners is not always straightforward. The transferability of a warranty depends on its type and the specific terms set by the provider.
Some warranties, like those for newly built homes, are attached to the property itself. They automatically pass to the next owner. Other warranties, such as those for appliances or specific contractor work, may have different rules. Some manufacturers or contractors may not allow transfers at all. Understanding these differences is vital for protecting your new investment. This knowledge helps you know what is covered and what expenses you might face. Asking the right questions before you buy can save you from unexpected costs later.
How New Home Warranty Programs Work
Most new homes come with a statutory warranty provided by the builder. These warranties are mandated by provincial law to protect new buyers from defects. The great news for subsequent buyers is that this coverage stays with the house, not the original owner. If the home is still within its warranty period when you buy it, the remaining coverage automatically transfers to you. You do not need to pay a fee or fill out extensive paperwork to receive this protection. This seamless transfer provides peace of mind.
These new home warranties typically have tiered coverage. For example, the first year might cover defects in work and materials. The first two years may cover issues with the electrical, plumbing, and heating systems, as well as the building envelope. The longest coverage period, often seven years, protects against major structural defects. These are serious issues that affect the home’s core integrity. As the new owner, you inherit the balance of each of these coverage periods. You must obtain the home’s original warranty documents from the seller to understand the exact start dates and coverage details.
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The Official Process to Transfer a Warranty
When a warranty is transferable, you usually need to take a few steps to make it official. Simply possessing the original paperwork is not always enough. Many companies require the new owner to formally register the product under their name. This process updates their records and ensures you can access service when you need it. Ignoring this step could lead to a denied claim down the road, even if the warranty was technically transferable. You should handle this process soon after you take possession of the home.
To complete the transfer, you will likely need specific information. The manufacturer will ask for the product’s model and serial number, the original date of installation, and proof of your home purchase. Some companies may also charge a small administrative fee to process the transfer. We recommend creating a list of all warrantied items and their providers. Then you can work through the list methodically. It is helpful to ask the seller for the following documents:
- Original purchase receipts
- Warranty certificates
- Product manuals
- Contact details for the installer or manufacturer
Guarantees from Contractors and Renovators
Many homeowners invest in major updates like new windows, a finished basement, or a new roof. The contractors who perform this work often provide a workmanship warranty. This type of guarantee covers the quality of the installation and the labour. Whether this warranty transfers to you as the new owner is entirely up to the contractor. The terms should be clearly outlined in the original contract for the work. Some companies use transferable warranties as a selling point for their services.
Larger, well-established renovation companies are more likely to offer transferable warranties than smaller, independent contractors. Their contracts may specify a simple process for the new homeowner to register. For smaller jobs or less formal agreements, a warranty may be a simple verbal promise that will not extend to you. For any significant renovation, you should request a copy of the contract from the seller. Reviewing this document helps you understand what is covered and for how long. It also tells you if the protection will continue after you buy the home.
Third-Party Home Warranties
You may encounter another type of coverage called a third-party home warranty. This is not a manufacturer’s warranty on a specific product. Instead, it is a service contract or policy that covers repairs and replacements for various home systems and appliances for a set period, usually one year. A seller might purchase one of these policies to make their home more appealing to buyers. It offers a safety net against unexpected breakdowns of major components like the furnace, air conditioner, or plumbing systems.
These home warranty policies are almost always designed for easy transfer to the new homeowner. The transfer process is usually simple. It involves contacting the warranty company and providing them with your name and contact information. You will also need to provide the closing date of the home sale. A small administrative fee may apply. This type of warranty can be very valuable, especially in an older home where appliances and systems are nearing the end of their lifespan. It provides a clear budget for repairs during your first year of ownership.
Conclusion
Taking control of your new home’s warranties requires a proactive approach. As a buyer, you must do your due diligence during the purchasing process. Do not assume any coverage will automatically transfer to you. You should actively seek out information and documentation. This diligence protects you from surprise expenses after you move in. A clear understanding of your warranty status allows for better financial planning and gives you confidence in your new home. A real estate agent can help you add the right clauses to your purchase offer.
Your agent can include a condition in the Agreement of Purchase and Sale. This clause requires the seller to provide all available warranty documents for review before the deal is finalized. During your home inspection, ask the inspector to identify the age and make of all major systems and appliances. You can use this list to research the manufacturer’s warranty policies online. After you close on the home, create a file for all your warranty information. Set reminders on your calendar for any registration deadlines. This organization ensures you are prepared to make a claim if an issue arises.
