- You may own an asset you forgot about: a home built in the last decade often still carries unexpired builder coverage, commonly structured as 1 year on workmanship, 2 years on systems, and 10 years on major structural defects.
- Most structural warranties transfer: third-party coverage usually runs with the house, not you, for whatever time is left, sometimes automatically and sometimes with a short form and a small fee.
- The paperwork is the point: the coverage is only as good as your ability to prove the house was enrolled, so hunt down the warranty booklet and certificate before you list.
- Be honest about scope: that 10-year tier is narrow. It covers major load-bearing failures, not drywall cracks, settling, or cosmetic issues buyers often assume are included.
- It is a selling point, not a price bump: market it as transparency and peace of mind, and do not expect it to move your appraisal.
What You Actually Still Have
If your house was built in roughly the last 2 to 10 years, there is a good chance it came with a builder warranty that has not fully expired. Most sellers file the paperwork at closing and never think about it again. That is a mistake, because the unexpired portion is a real, transferable asset you can hand to your buyer.
Almost every new-home warranty follows the same shape. A builders warranty covers a newly built home under three terms at once: one year on workmanship and materials, two years on the systems that run through the walls (plumbing, electrical, heating and cooling), and ten years on major structural defects. That is why the industry calls it a "1-2-10" warranty. The builder usually buys the coverage and enrolls the house before closing, so the original buyer typically paid nothing for it directly.
By the time you sell, the one-year and two-year tiers are usually long gone. The piece that still has value is the structural tier. A 10-year structural warranty covers major structural defects to load-bearing components that cause actual physical damage or render the home uninhabitable. A house framed four years ago can still carry six years of that protection for the next owner.
That claim-cost number is the whole reason the coverage exists. With the average structural defect claim costing $42,500 or more, insurance-backed warranties are an inexpensive tool to help protect builders and their homeowners from potentially catastrophic losses. For a buyer, inheriting protection against a five-figure foundation repair is worth paying attention to, even if it rarely gets used.
How the Transfer Actually Works
There are two broad flavors of builder warranty, and they transfer differently.
Third-party, insurance-backed warranties
These are administered by companies like 2-10 Home Buyers Warranty, RWC, or StrucSure. The structural tier generally follows the home. The coverage runs with the house, not the original buyer, and it passes automatically to each subsequent owner for whatever time is left on the clock. In practice, the administrator still wants the new owner on file. For a 2-10 warranty, you complete the successive homeowner registration form in the back of the warranty booklet, then sign and mail it with a check for $20. You can read the exact steps on the 2-10 Home Buyers Warranty transfer page.
Builder express warranties and statutory warranties
Some builders self-administer their own written warranty instead of buying a third-party product. Terms vary wildly, and transfer rules for the workmanship year can differ from the structural years. A handful of states also impose a statutory warranty that simply follows the house. In Florida, for example, the mandatory one-year builder warranty attaches to the home, not the buyer, which matters only if the house is still in its first year. The takeaway: read the actual warranty document, because builders and warranty administrators use a specific definition of structural defect, and it is narrower than most people assume.
Do the transfer at closing, not after. Fold the warranty handoff into the closing package with the other documents your buyer signs. If you want a map of everything that changes hands, see our guide to the forms you will sign at a real estate closing.
Turn a forgotten warranty into a selling point
A strong listing agent knows how to document and market unexpired builder coverage so buyers see it as a reason to offer, not a detail buried in the disclosures.
Match with a top local agentHow to Verify Remaining Coverage and Get the Paperwork
Before you can market the warranty, you have to prove it exists. Treat this like a short scavenger hunt in the weeks before you list.
Find the warranty booklet and certificate
The booklet spells out coverage, exclusions, and the claims process. The certificate of warranty confirms the house was actually enrolled and names the administrator and warranty term. If you cannot locate them, check your original closing binder first.
Call the administrator to confirm the clock
Contact the warranty company with your address and enrollment number and ask for the exact expiration date of the structural tier. Request a current statement of coverage in writing. If a 2-10 program, you can request a copy of the booklet and transfer form directly from the administrator.
Pull your maintenance records
Gather receipts for HVAC service, grading or drainage work, foundation watering in expansive-soil regions, and any builder punch-list repairs. Warranty payouts often hinge on proof you maintained the home. No records, weaker claim.
Assemble a clean transfer packet
Booklet, certificate, administrator contact, transfer form, any claim history, and your maintenance file. Hand it to your buyer at closing and keep a copy.
One warning that applies to every builder warranty: the coverage is only as good as your ability to prove it exists. A buyer who gets a tidy, complete packet trusts the rest of your disclosures more. A buyer who gets "I think it's a 2-10, check with the builder" discounts the whole thing.
The Honest Counterpoint: Buyers Overvalue This
Here is the part marketing copy leaves out. The long structural tier is genuinely useful, but it is far narrower than buyers assume, and that gap causes disappointment.
The ten-year coverage is not a catch-all for anything that goes wrong with the house. The long tail, the ten-year piece, is narrow. It covers a qualifying structural defect, meaning an actual failure of a load-bearing component that makes the home unsafe to live in. Normal settling, hairline slab cracks, and cosmetic drywall cracks are generally excluded unless they are the symptom of an actual structural failure. Only settlement that causes actual damage to load-bearing structure is covered.
Weather and wear are out too. Storm damage from tornadoes, hail, high winds, freezing rain, or flooding is excluded from virtually every builder warranty, which falls under homeowners insurance instead. If your buyer is picturing a warranty that fixes a leaky faucet in year five, set expectations early, because it does not.
There is also a documentation trap. Administrators can deny claims for improper maintenance, so the burden to prove you cared for the home sits with the owner. And warranty disputes are common enough that they land on regulators' desks: in January 2026 the Arizona Attorney General's Office secured an $11.8 million consent judgment against a home warranty company over its sales and claims practices, though that company denied wrongdoing. That case involved a home service contract rather than a builder structural warranty, but the lesson travels: read the fine print and keep records, because warranty companies pay claims on their terms, not yours. If you are weighing coverage in general, our piece on whether home warranties are worth it or a waste of money digs into the tradeoffs.
- You cannot confirm enrollment. A warranty you cannot prove is worthless. Call the administrator and get written confirmation before you advertise it.
- The builder is out of business. For a self-administered builder warranty, no builder usually means no coverage. Insurance-backed third-party warranties survive the builder; self-administered ones often do not.
- You overstate the coverage in the listing. Calling a narrow structural warranty a "full home warranty" invites a dispute later. Describe it accurately.
- There is an open or past structural claim. Prior claims and known defects usually need to be disclosed. Hiding them can be worse than the defect itself.
How to Market It in Your Listing
Used well, an unexpired structural warranty is a credibility signal, especially against resales that offer no coverage at all. If you are selling into a market where buyers are weighing new construction against existing homes, this is one way an almost-new resale competes.
Keep the language specific and honest:
What to put in the listing remarks
Name the administrator and the exact remaining term, for example "Transferable 2-10 structural warranty, roughly six years of major structural coverage remaining, documentation available." Specific beats vague every time.
What to hand the buyer's agent
Offer the warranty packet during due diligence, not after the inspection fight. It reassures buyers who are nervous about builder quality and can soften negotiations on minor items.
What not to promise
Do not imply the warranty covers systems, appliances, or cosmetic issues. Frame it as structural peace of mind on the bones of the house, which is exactly what it is.
Set your expectations too. An unexpired structural warranty rarely changes an appraisal and will not justify pricing above comparable homes. It is a tiebreaker and a trust builder, not a line item. Price the house on its merits, then let the warranty sweeten a strong offer. A pre-listing inspection pairs well here, because clean third-party documentation plus a warranty is a powerful combination; see our seller's guide to pre-listing inspections.
Price it right, then let the warranty close the gap
A top-performing agent will position your almost-new home against the right comps and use the warranty as a negotiating edge, not a crutch.
Compare agents for freeThe FHA and VA Document You Should Not Confuse It With
If your home was financed with an FHA or VA loan when it was built, a separate federal form may be in your file, and it is easy to mix up with the builder warranty. HUD retains the requirement that the Warranty of Completion of Construction, form HUD-92544, be executed by the builder and the buyer of a new construction home as a condition for FHA mortgage insurance. You can read the rule in the Federal Register notice on FHA warranty requirements.
That form is not a 10-year structural warranty. The HUD-92544 warranty covers defects in materials and workmanship for one year from title conveyance or completion, and it includes provisions for notifying the builder of any nonconformities. HUD also changed the old rules: as part of a 2018 final rule effective March 2019, HUD eliminated the insured ten-year protection plan requirements. You can see the details in HUD's own mortgagee letter on removing the ten-year protection plan requirement. The practical point for a seller: do not advertise a one-year completion form as a decade of structural coverage. They are different documents doing different jobs.
Frequently Asked Questions
Does a builder warranty transfer to a new owner automatically?
Often yes for the structural tier. With third-party insurance-backed warranties, the coverage generally runs with the house for the remaining term and passes to each new owner. Even so, administrators usually want the new owner registered. A 2-10 warranty, for example, asks you to submit a successive homeowner form and a small fee so the record matches the deed.
How much does it cost to transfer a structural warranty?
It is cheap or free, depending on the administrator. 2-10 Home Buyers Warranty lists a $20 fee for the successive homeowner registration. Some programs and statutory warranties transfer at no cost. Always confirm the current amount and process directly with the warranty company before closing.
What does a 10-year structural warranty actually cover?
Major failures of load-bearing components, such as the foundation, load-bearing walls, beams, and roof framing, that cause physical damage or make the home unsafe to live in. It does not cover cosmetic cracks, normal settling, systems, appliances, or weather damage. The bar for a qualifying structural defect is high and specific.
Can I use the warranty to raise my asking price?
Realistically, no. An unexpired structural warranty rarely affects an appraisal and will not support pricing above comparable homes. Treat it as a trust signal and a tiebreaker that can help a strong buyer feel confident, not as a line item that adds dollars to your list price.
What paperwork do I need to give the buyer?
The warranty booklet, the certificate of warranty confirming enrollment, the administrator's contact information, the transfer form, any prior claim history, and your maintenance records. A complete, organized packet handed over at closing is what makes the coverage real for the next owner.
What happens to the warranty if the builder went out of business?
It depends on the type. Insurance-backed third-party warranties are designed to survive a builder's closure because an insurer stands behind the coverage. A builder's self-administered express warranty often dies with the company, since there is no one left to perform repairs. Check which kind you have.
Do I still have to disclose known defects if the home is under warranty?
Yes. A warranty does not replace your disclosure duties, which vary by state. Known structural problems, past claims, and open repairs generally must be disclosed regardless of coverage. Review your state's rules in our guide to what sellers must disclose, and when in doubt, disclose.
Is the FHA HUD-92544 form the same as a 10-year structural warranty?
No. The HUD-92544 Warranty of Completion of Construction is a builder guarantee covering materials and workmanship for one year, required for FHA mortgage insurance on new construction. HUD removed the old insured ten-year protection plan requirement in 2019. Do not confuse the one-year completion form with a decade of structural coverage.
The Bottom Line
An unexpired builder structural warranty is a modest but genuine advantage when you sell an almost-new home. It will not change your appraisal or let you overprice, but it reassures buyers, competes against coverage-free resales, and can smooth negotiations. The move is simple and unglamorous: find the booklet and certificate, confirm the remaining term and transfer steps with the administrator, gather your maintenance records, and describe the coverage accurately in your listing. Oversell it and you invite a dispute. Document it honestly and you hand your buyer one more reason to trust you and sign.
Disclaimer: This article is for informational purposes only and should not be considered financial, investment, or legal advice. Figures and rules are drawn from the U.S. Department of Housing and Urban Development, the Federal Register, 2-10 Home Buyers Warranty, and reporting on an Arizona Attorney General enforcement action, and warranty terms vary by builder, administrator, and state, so verify details with your specific warranty company and a qualified professional. EffectiveAgents is a real estate agent matching service.
