Warranty tail

Definition

Multi-year workmanship warranties transfer whole in a stock sale, and only by choice in an asset sale.

Why It Matters

It is inherited liability, and it arrives without a schedule. Callbacks and leak claims on work done years before closing land on the new owner regardless of who was on the roof, so ask for the callback history, the average cost of one, and how many jobs are still inside their warranty period. Where the number is material, it belongs in the price or in an escrow rather than in an assurance that the work was good.