New Georgia law strengthens HVAC warranty protections for homeowners and buyers
A new Georgia law is changing how HVAC warranties work, giving homeowners and future buyers stronger protections and fewer surprises when costly repairs are needed.
The law aims to prevent HVAC manufacturers from requiring product registration in order to receive full warranty coverage. It also allows warranties to transfer automatically to new homeowners and ensures warranty coverage begins at the time of installation, not registration.
For HVAC professionals like Jason Peavey, owner of PV Heating, Cooling and Plumbing, the law reinforces practices his company already follows.
"For us, it doesn't change any work that we do," Peavey said. "For you know, the 18 years we've been in business, we've always registered equipment. However, it's definitely an amazing law that they did pass that will really help customers."
Under the new law, manufacturers can no longer shorten a warranty simply because a homeowner failed to complete registration paperwork. Peavey said that the issue has caused real problems in the past.
"Unfortunately, in the past, we have come across situations where we're repairing a system that is under 10 years old, and the homeowner believed they had an extended warranty," he said. "They might have thought they had a 10-year equipment warranty, but it's actually a five-year because the equipment was never registered or there was fine print in the proposal."
Peavey said the change protects consumers even if a contractor fails to register the unit.
"So I think it's a really great change that will benefit customers," he said. "In the case that that doesn't happen, the customer will still be protected."
The new protections are especially important for homebuyers, according to real estate broker Kelly Hardnett, owner of Kelly Realty Group. She said she has seen deals complicated by warranty issues after closing.
"We have been in situations with buyers where we were told that there was a warranty and it would change over to them as soon as they closed on the home," Hardnett said. "And then when they close on the home, something happens with the HVAC."
She says buyers often learned too late that warranties didn't transfer automatically.
"So now, essentially, the new law states that any existing manufacturer's warranty will automatically transfer over to the new buyer," Hardnett said. "They would essentially be getting whatever was left over on that warranty from the original owner, as if they were the original owner."
Hardnett says that added certainty brings peace of mind during one of the biggest purchases people make.
"It definitely, if anything, it gives the buyer peace of mind and the sellers as well," she said. "Of course, the buyer is going to be more comfortable with moving forward with that transaction, because they know what big of an expense it is."
Hardnett is also experiencing the cost of HVAC replacement firsthand. She recently replaced a system in her own home and qualified for a state rebate.
"For the exterior and interior unit together, it came out to around $22,000," she said. "After the rebate, we were told about through the state of Georgia, we ended up only having to pay a little more than $6,000."
She called the rebate program "awesome," adding, "If you've ever had to replace a system, you know that that can be very costly.
Hardnett encourages homeowners and buyers to ask questions and keep documentation.