Volume 48, July 2003: Transferring Roofing Warranties

Perspectives
A Quarterly Information Source from Benchmark, Inc.
Volume 48 July 2003

Transferring Roofing Warranties

by Kevin Ernster, RRC

Many owners feel that when selling or purchasing a building, the roofing warranty provides an indication of the roof's quality and longevity. With this in mind, the roofing warranty can be an important document in this transaction. If you are the holder of a roofing warranty, what happens to that warranty when ownership of the building changes hands?

Like other legal documents, warranties can generally be transferred from one party to another, unless there is a specific prohibition against such assignment. Some roofing guarantees contain such prohibitions, and some state specifically that no assignment or transfer will be allowed without the prior written permission of the manufacturer.

Each roofing manufacturer has specific requirements on how or if a transfer of the warranty can be accomplished. These requirements range from the payment of a several hundred dollar fee, inspection of the roof and repairs to the roof prior to transfer, to a total ban on the transfer. The requirements can vary as noted by the following sample of how manufacturers stand on the issue.

BondCote Systems
Standard Warranty

"Not assignable without written permission from BondCote Roofing Systems."

Carlisle SynTec Inc.
Golden Seal Total Roofing System Warranty

"Warranty not assignable by operation of law or otherwise; however application may be made by a new building owner for reissuance of the warranty during the original warranty period. Certain procedures, including an inspection of the roofing system by a Carlisle representative, and fees may apply to any reissuance. Carlisle reserves the right, in its sole discretion, to refuse to reissue warranty."

Duro-Last Roofing
15-year Warranty

"Assignable with written permission of Duro-Last."

Firestone Building Products
Red Shield Warranty

"Warranty is transferable subject to Firestone inspection, written approval and payment of current transfer fee."

GAF Material Corp.
Commercial Roof Guarantee

"Assignable to another owner only if (1) request is made in writing within 30 days after ownership transfer, (2) membrane is inspected and any required repairs are completed at owner's expense, (3) proposed assignment is approved in writing by an authorized GAF Contractor Services manager, and (4) an assignment fee of $500 is paid. Otherwise, guarantee is not assignable, directly or indirectly."

Johns Mansville
Gold Shield Guarantee

"Guarantee will be transferred by JM, in its sole discretion, only after receiving satisfactory information and payment of a transfer fee, which must be delivered to JM as soon as practical, but no later than 30 days after the date of building ownership transfer."

Tamko Roofing Products
NDL Guarantee

"The guarantee shall accrue and inure only to the benefit of the first consumer purchaser or owner of the Tamko product and shall not be assigned, sold or transferred in any manner whatsoever."

Tremco Inc.
10 year QA Warranty for New Roofs

"Owner's rights under warranty are not transferable."

*Source of quoted information: Low-Slope Roofing 2001-02 Materials Guide, "Roof Membrane Warranties." Published by the National Roofing Contractors Association.

These are just a few random samples of manufacturers' warranties. There are over 50 manufacturers listed in the Materials Guide, and each may have several levels of warranties available. As you will note, the requirements for transferability vary substantially and in most cases, are vague in terms of what is required and when it is to happen.

If the assignability or transferability of a warranty is important to you, be sure you understand what the roofing system manufacturer requires to assign the warranty, if the transfer option is available at all prior to the installation of your roof system.