HVAC warranties now transfer with an Alabama condo unit — and no transfer fee is allowed
HVAC warranties now transfer with an Alabama condo unit — and no transfer fee is allowed
2026-09-10 · Alabama · Compliance
A small Alabama act that took effect last October does something condominium buyers have been quietly losing money on for years: it carries the HVAC warranty across the closing table, and it forbids charging for the privilege.
HB 95 became Act 2025-374, signed on May 14, 2025 and effective October 1, 2025.1 It is a free-standing, uncodified act.
What it does
On a conveyance on or after October 1, 2025, an unexpired manufacturer's warranty on a heating, ventilation and air-conditioning system transfers automatically to the new owner and continues as if the new owner were the original purchaser. The warrantor may not charge a transfer fee.
The act applies where the sale, the warranty, and any warranty agreement entered into or renewed all fall on or after October 1, 2025.
Condominium units are named
The reason this matters to a condominium buyer specifically is the definition. “Residential real property” expressly includes
“A unit in a multi-unit residential structure in which title to an individual unit is transferred to the owner of the unit under a condominium or cooperative system.”
Condominium and cooperative units are frequently carved out of consumer property legislation. Here they are carved in, by name.
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