How to Convert Home Warranty Coverage from Seller to Buyer

A home warranty transfer is the process of reassigning an existing home warranty policy from the seller to the buyer during a real estate transaction.

Quick Answer: Yes, most home warranties are transferable from seller to buyer, typically requiring only a phone call to the provider and a small transfer fee (usually $25–$50). Liberty Home Guard charges no transfer fee.

Moving is one of the most high-stress events we experience. Fortunately, a home warranty can make the process of selling your home a little bit easier.

There are of course the standard benefits of home warranties. If the water heater suddenly starts acting up, or the garage door is on the fritz, your home warranty provider can send a technician to resolve the issue at minimal cost to you. But there are less obvious advantages of having an active home warranty contract while your home is on the market. For one thing, warranties have been shown to increase home values. For another, homes with active home warranties sell more quickly than homes without them. In fact, according to the National Home Service Contract Association, approximately 80% of homes on the market include a home warranty paid for by the seller.

So you’ve found a buyer, sold your home, and moved out. What happens to that home warranty? In this post, we’ll review how to convert seller home warranty coverage for the new buyers of a home.

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The Importance of Home Warranty in Real Estate Transactions

Home warranties provide several benefits for both buyers and sellers, including peace of mind, cost savings, and convenience. Both parties can avoid disputes over post-sale repairs by having warranty coverage in place.

Seller’s Perspective

For sellers, offering a home warranty as part of the real estate transaction can be a strategic move. It can make their property more appealing to potential buyers, which can lead to quicker sales and potentially higher sale prices. Additionally, sellers can avoid the stress of unexpected repair requests during the negotiation process. Liberty Home Guard’s Seller Listing Coverage product offers seamless seller-to-buyer warranty conversion, providing protection while the home is on the market and easy transfer to the new owner at closing.

Buyer’s Perspective

From the buyer’s perspective, having a home warranty included in the purchase can provide a sense of security and peace of mind. It means that they won’t be burdened with the cost of repairing or replacing covered items immediately after moving in. Instead, they can focus on settling into their new home without the worry of unexpected expenses.

Are Home Warranties Transferable?

Policies may differ from plan to plan, but generally yes, home warranties are transferable service agreements. It is incredibly common for a real estate agent or home seller to purchase a home warranty policy with the intent of later transferring it to the new buyers of the home.

The process of transferring your home warranty contract is actually quite simple, but it can work out in a few different ways.

How to Transfer Home Warranty Coverage

Often, the process of transferring home warranty coverage requires only a phone call. Most transfers must be completed within 30 days of the home sale. Here’s how to do it:

Step 1: Determine payment responsibility. Work out the details of who will pay for the policy—you, the buyer, or a realtor.

Step 2: Gather the new owner’s information. Collect the new homeowner’s name, address, phone number, and email address.

Step 3: Contact your home warranty provider. Call your provider to initiate the transfer. They will explain the process and prompt you to provide all necessary information.

Step 4: Pay the transfer fee. Some providers charge a small transfer fee, typically $25–$50. Note that Liberty Home Guard charges no transfer fee. Once paid, the transfer is complete.

Tips for a Smooth Transition

Transferring home warranty coverage from the seller to the buyer can be a straightforward process if you follow these essential tips:

1. Review Warranty Terms and Coverage

Thoroughly review the existing home warranty contract to understand what is covered, what is not, and any specific terms or conditions. This knowledge will help you make informed decisions and avoid unexpected surprises.

2. Clarify What’s Covered and What’s Not

Contact the home warranty provider and ask specific questions about coverage. Clarify any doubts you may have about the extent of protection for various home systems and appliances.

3. Keep Records and Documentation

Maintain records of all communications and documentation related to the home warranty transfer. This includes emails, application forms, receipts, and any other relevant paperwork. Having a well-organized record can be invaluable if issues arise.

4. Stay Informed About Expiration Dates

Keep track of the expiration date of your home warranty coverage. Knowing when your coverage ends allows you to plan for renewals or explore other options for extended protection.

If you have a policy with Liberty Home Guard that you would like to convert, reach out to us today at (833)-544-8273. We’re happy to talk you through the process.