Buying
or selling a home is a complex process that involves moving parts, and the one
that often gets ignored is the home warranty. The question many homeowners ask themselves is, does home
warranty transfer to new owner when a property is transferred? The answer is yes;
most home warranties are designed to be transferable, as this offers comfort
and security to both the buyers and sellers. You can ensure a smooth transition
by learning how this process works to get the maximum out of your warranty
coverage.
In
this guide, let’s explore how home warranty transfer works, what homeowners must do to complete the
process, and why it is a valuable tool in real estate transactions.
A
home warranty is a service contract that covers repairs or replacements of
major systems and home appliances due to normal wear and tear. It offers
additional cover to the standard homeowners’ insurance, which usually covers
only accidental damages, as well as damages caused by natural disasters.
The
most commonly covered items include the HVAC systems, electrical and plumbing systems, kitchen appliances, and
water heaters. A home warranty means that the homeowner will not have to pay
hefty repair expenses, and qualified technicians are available to them with a
single service call.
Yes, home warranties, in most
cases, can be transferred when selling a property. This means that the new
homeowner will be in a position to continue with the cover for the remainder of
the policy term. The process is easy and guarantees the continuous protection
of the home systems and appliances.
When
a home with a warranty is sold, the seller (or their real estate agent) usually
informs the home warranty company about the change in ownership. The provider
then updates the policy to include the new owner’s information, which is
generally without any extra charge.
With
Service Plus Home Warranty, the coverage can be
transferred easily. Homeowners may contact the support team of the company to
update the ownership information so that the warranty benefits will run
smoothly for the buyer.
Read
More: https://www.serviceplus.com/blog/home-warranty-renewal-explained-when-and-how-to-renew-your-coverage
A
transferable home warranty is an excellent marketing tool for homeowners who
have a desire to attract potential buyers. It also assures the buyer that major
systems and appliances in the home are protected from unexpected breakdowns and
makes the home an attractive and saleable place.
The
key benefits for sellers include:
● Added value for buyers: The warranty provides the buyer with
a safety net, which reduces the post-sale repair worries.
● Faster sale of the home: Homes having a transferable warranty
usually sell out faster because they provide confidence to the new owners.
● Protection during listing: Sellers can stay under coverage
while the home remains on the market, which saves them the cost of expensive
repairs before the closing.
Offering
a warranty by Service Plus Home Warranty enables the sellers to add value to their
property and have a smooth transfer process during the closing process.
For
the buyers, a transferable home warranty provides a sense of security,
especially during the first year of homeownership when unexpected problems may
arise.
The
key advantages for buyers include:
● Immediate coverage: Buyers get coverage immediately after closing the
purchase, and they do not necessarily have to purchase a new plan right away.
● Cost Savings: Repair or replacement costs for covered items incur a great
saving.
● Peace of mind: Buyers will be able to move in knowing that when an
appliance or system breaks, help is only a push of the button away.
The
transfer of the warranty also guarantees that the buyer doesn’t have to be
concerned with the gaps in warranties or any eligibility concerns. With Service
Plus Home Warranty, new homeowners can also choose to renew or upgrade their
plan upon expiry of the initial one.
Home
warranty transfer is an easy process, but it’s important to follow the correct
approach to avoid delays.
Here’s
how it usually works:
1. Inform the Warranty Provider: The seller is responsible for
informing the home warranty company to let them know about the change in
ownership.
2. Provide the required details: The information, such as the
name of the buyer, contact information, and closing date, may be requested.
3. Pay the transfer fees (if
applicable): There
may be a small administrative fee for transfers, but many companies have no
fee.
4. Confirm coverage continuity: The new homeowner should
receive written confirmation that the coverage has been transferred
successfully.
Upon
completion, the buyer is allowed to claim the repairs immediately under the
existing plan.
In
today’s modern competitive housing market, a transferable home warranty can
provide peace of mind to both parties. For sellers, it is a marketing advantage
that makes their home stand out amongst others. For the buyers, it offers
protection against the economic burden of sudden repairs to the new owners.
It
is especially useful in older houses, where the equipment and systems are
likely to have reached the expiry date. Instead of facing costly out-of-pocket
repairs, the warranty will ensure the availability of skilled technicians.
Service Plus Home Warranty makes this process easier, which helps both the buyer and seller navigate home transactions with confidence.
Yes,
most of the home warranties can be transferred to the new owners during the
sale of a property, to ensure continued protection for covered systems and
appliances.
The
person who’s selling the home simply contacts the warranty provider, provides
the buyer’s details, and updates the information of ownership, usually with no
extra fees.
Yes,
there are most home warranties are fully transferable, which allows the new
homeowner to benefit from the rest coverage period.
Yes,
it is very worth it to have a home warranty, as it helps you save on costly
repairs, provides peace of mind, and ensures quick access to professional
service when home systems fail.
