What happens to roof warranties when a roofing company is sold?
Past warranties usually stay with the company, so a buyer of the company inherits them. Others may come from the manufacturer and depend on the installer’s status. Get a list of warranties still in force and agree in writing who pays for repairs.
A roofing warranty is a promise that lasts long after the job is done. If you buy the company, assume that promise comes with it, whatever the seller says. If you buy only assets, the position can differ, and your lawyer should explain exactly how. Ask for a register of past jobs with warranty terms, dates and claim history. Check whether the warranties are the company’s own, the manufacturer’s, or both. Manufacturer-backed coverage often depends on the installer’s approval or training, so find out whether that status carries over to you.
Look for patterns in past claims, such as repeated leaks from one crew or one product. These tell you how much future cost to expect and whether the company’s methods are sound. Finally, think about the clients. They may call you the day after closing about a roof installed long ago. Decide how you will respond, who will attend, and what the agreement says about repairs on earlier work. Ask your insurance adviser what coverage you will need for claims on earlier work, and whether the existing policy continues after the sale.
Key takeaways
- Get a register of every warranty still in force.
- Check whether manufacturer coverage depends on installer status.
- Agree in writing who pays for repairs on earlier jobs.
- Ask your insurance adviser how claims on earlier work are covered.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a roofing contractor in Canada
- GuideBuying a concrete contractor in Canada
- GuideBuying a framing contractor in Canada
- GuideBuying an insulation contractor in Canada
- Expert answerHow can I tell whether a roofing company makes money on its jobs?
- GuideBuying a construction company (general contractor) in Canada
- Expert answerHow do I check the quality of a solar installer’s past roof installations?
- Expert answerHow do I check how a window and door installer handles warranty callbacks?
Financing
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
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