Q: Are foundation warranties automatically transferred to a new owner of a home that had previous foundation work done?
My wife and I purchased a home in 2020 that had previously had foundation work done by a company called Dawson Foundation Repair. The home started to show signs of settling in 2022, so we reached out to have them come adjust the piers that were already installed/potentially install additional piers. We were told that the service agreement needed to be reinstated in our name before any work could be completed. This process includes us have a hydrostatic test performed to check for under slab leaks, pay a $250 transfer fee to have the service agreement reinstated in our names, and that ALL reinstatement service agreements also carry a $75+ inflation fee determined by the original service agreement signed with the previous owner. I'm trying to determine if this is legal, as my understanding is that the warranty should transfer over to us, as the work was performed on this property, regardless of owner.
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A:
An agreement from a private company is transferrable to a new owner. However, that agreement contains the details and obligations, of the parties to it. If you can get a copy of the original agreement, the terms of transfer will be there. If not, then there is a problem.
If there is a small transfer fee, I would pay it. However, I would bring the agreement to a good lawyer for a complete review.
I hope this helps.
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