How to Transfer a Home Warranty When Selling Your Home
Selling your home can be a whirlwind but offering a home warranty transfer can give you an edge. Not only can it make your home more appealing to buyers, it can also speed up the deal. If you already have a home warranty in place, the good news is: most providers allow you to transfer it easily to the next owner.
This guide breaks down how to transfer a home warranty step-by-step, what documents and fees to expect, and why it can be a smart move when selling your home.
Why Transfer a Home Warranty?
Transferring a home warranty isn’t just a formality it’s a potential deal closer.
Here’s what it offers the buyer:
- Peace of mind during the first year of ownership
- Coverage for unexpected breakdowns (e.g., HVAC, plumbing, major appliances)
- Less pressure to budget for immediate repairs
For you as the seller:
- It can set your listing apart in a competitive market
- It helps avoid post-sale disputes over covered systems
- Some warranties even allow you to offer coverage during the listing period
According to a 2024 report by the National Association of Realtors, homes with transferable home warranties sold 11 days faster on average and for $2,300 more than those without.
Step 1: Check If Your Warranty is Transferable
Before anything else, contact your home warranty provider or check your contract. Most major companies like American Home Shield, Choice Home Warranty, and Liberty Home Guard allow free or low-cost transfers to the buyer.
Look for:
- Transfer eligibility clause
- Timeline for notifying the company
- Any transfer fees (usually $25–$50)
- Coverage continuation details (some offer upgrades at time of sale)
Tip: If your plan is expiring soon, ask the provider about renewal options the buyer can activate after transfer.
Step 2: Notify the Warranty Company
As soon as you go under contract or finalize the closing date, reach out to your provider to initiate the transfer. You’ll typically need:
- A copy of the home warranty contract
- The buyer’s name and contact info
- Property address
- Closing date
Some companies let you complete this process online or through a seller portal, while others may require a phone call and signed transfer form.
Step 3: Include Warranty Info in Seller Disclosures
To keep everything transparent, include the home warranty details in your seller disclosure paperwork or MLS listing. That way:
- The buyer knows the warranty exists
- They understand what’s covered (and what’s not)
- Your real estate agent can market it as a feature
Make sure to provide:
- A copy of the warranty contract
- A summary of coverage limits
- Contact info for the warranty provider
Step 4: Finalize at Closing
At closing, the warranty should be documented as part of the sale. Typically, the title company or closing attorney will:
- Note the transfer in the final paperwork
- Pay any transfer fee out of proceeds (or you may pay it upfront)
- Confirm the buyer accepts the warranty as-is
The warranty company may then send a confirmation to the buyer via email or mail within 7–10 days of the closing date.
Step 5: Follow Up With the Buyer (Optional, But Helpful)
While not required, giving the buyer a brief handoff email can go a long way toward goodwill. Consider including:
- Confirmation that the home warranty was transferred
- Contact information for the warranty provider
- Login instructions if the provider has an online portal
This extra step can help prevent confusion if the buyer needs to make a claim right after move-in.
Common FAQs About Home Warranty Transfers
Q: Can I transfer a warranty mid-policy year?
Yes — most providers allow transfers at any point during the term.
Q: Does the coverage reset or stay the same?
Usually, it stays the same. Some companies allow the buyer to upgrade after the transfer.
Q: What happens if I don’t transfer it before closing?
If the transfer isn’t completed before closing, the warranty may lapse or require the buyer to start a new policy.
Q: Can I include the warranty cost in the home price?
Yes — many sellers either pay the transfer fee themselves or roll it into closing costs as a buyer incentive.
Make It a Selling Point
A transferable home warranty can make your home more attractive especially to first-time buyers who are wary of repair costs. It signals that you’re a responsible homeowner and helps reduce buyer hesitation, particularly in an older home.
Don’t forget to include it in your listing description, such as:
“Includes 1-year home warranty transferable to buyer covers appliances, HVAC, plumbing & more!”
Next read: Do Buyers Really Value Home Warranties? (Survey Data)
Discover what today’s buyers actually think about home warranties and how much they’re willing to pay for peace of mind.
