A home warranty does not always end when a house is sold. Some contracts allow the plan to move to the new owner, and some do not. The transfer is easiest when both sides read the rules before the listing goes up, rather than at the closing table.
Step one: read the transfer clause
Find the section of the contract that covers transfers. It will say whether a transfer is allowed, what notice the company needs, and whether the company charges anything for it. Some contracts describe a transfer fee in plain words, and others leave the charge to be set later. If the clause is unclear, ask the company to explain it in writing.
Step two: decide who makes the request
The seller usually holds the contract, so the seller often starts the transfer. The buyer may need to sign a new enrollment or confirm the transfer. Agree between you who will contact the company, who will send the paperwork, and who will hold the copies.
Step three: confirm the timing
Ask whether coverage moves over on the closing day, or whether a waiting period applies to the new owner. A waiting period is the stretch after signing when covered repairs are not yet available. A new owner who inherits a contract may or may not face a new one, so ask the question directly and get the answer in writing.
Step four: confirm the obligor
The obligor is the company legally responsible for paying claims. Ask whether the obligor changes at transfer. If the plan is moving to a new company, ask what that means for the terms you already have.
Step five: settle cancellation and refunds
If the seller cancels the contract before the transfer finishes, ask who receives any refund and how it is calculated. Many contracts pay a refund to the account holder, which may not be the buyer. Agree in advance who receives what.
Step six: the new owner's first call
Once the transfer is recorded, confirm that the account lists the new owner's name, that the contact route works, and that the coverage schedule matches the house and appliances you actually have. Keep a copy of the transfer confirmation with the contract.
Before you buy a plan for a new home, you can read a sample contract to see the transfer and cancellation wording. The page home warranties with a sample contract you can read before buying lists where those samples are published.