On January 24, 2025, Alabama House Bill 95 was introduced, aiming to clarify and enhance the transferability of manufacturer warranties for heating, ventilation, and air conditioning (HVAC) systems during residential property sales. The bill seeks to address concerns regarding the limitations often placed on warranties, particularly those that require product registration or impose fees for warranty transfers.

Key provisions of House Bill 95 include the stipulation that a warrantor must honor the terms of a manufacturer's warranty when it is transferred to a new homeowner, without charging any fees for this transfer. Additionally, the bill specifies that the transfer of the warranty does not extend its remaining term, ensuring that new homeowners are aware of the warranty's duration. Notably, it prohibits any conditions related to product registration from affecting the validity of the warranty on HVAC systems or their components.

The bill is set to take effect on October 1, 2025, and applies specifically to sales of residential properties that include HVAC systems as fixtures. This legislative move is seen as a response to consumer complaints about the complexities and restrictions often associated with warranty transfers, which can lead to confusion and potential financial burdens for new homeowners.

While the bill has garnered support for its consumer-friendly approach, it may face scrutiny from manufacturers concerned about the implications of mandatory warranty transfers without fees. The ongoing debate may center around the balance between consumer protection and the operational realities of warranty management for manufacturers.

As the bill progresses through the legislative process, its potential impact on the real estate market and consumer rights in Alabama will be closely monitored. If passed, House Bill 95 could set a precedent for similar legislation in other states, reflecting a growing trend towards enhancing consumer protections in the housing sector.