A service contract is a promise tied to a specific unit, but the paper that holds the promise does not always move when the unit does. When a house is sold or a vehicle changes owners, the contract may stay with the unit, stay with the original buyer, or end. Which one applies is set by the contract and by the rules of the state where it was sold. The answer is usually easiest to find before the sale closes, not after.
Start with the transfer clause. Most contracts state whether they can be transferred, who must make the request, in what form, and within what time window. Some allow a transfer on written request that gives the new owner's name and the unit's identifying details. Some charge a fee for it, and some allow no transfer at all. Read the exact wording of the clause, not a summary on a sales sheet. Ask the seller or provider to confirm in writing whether the term continues to the next owner and which party holds the contract afterward.
Next, find out who keeps the unused part of the term. Ask whether any cancellation or transfer credit is figured on the time remaining, on claims already paid, or on some other base, and get the method stated in the contract itself. Do not rely on a figure mentioned in conversation. Ask also whether the seller may cancel the contract on the sale date and what notice the buyer receives if that happens.
Check the maintenance terms before the handover. Many contracts require the owner to keep up the upkeep the contract names. A new owner who inherits a unit may inherit those duties with no record of past upkeep. Ask for copies of the service history, the start-up or install paper, and any prior claim records the contract lists. If the record is missing, ask whether the provider will accept a fresh start-up check as the baseline, and get that answer in writing.
Ask what the state requires. Service contract rules are set state by state, and the rules on transfer, cancellation, and refunds can differ from one state to the next. Each state page on this site names the regulator and the statute, and says whether the state publishes a roster of sellers. Read the page for the state where the contract was sold before assuming any transfer rule. This guide does not restate the transfer rule of any one state. The state pages for Alabama, Florida, and Georgia are linked here as examples, and the other state pages follow the same layout.
Finally, gather the papers in one place. Before the sale closes, the buyer and the seller should each hold a copy of the contract, any transfer request form, the cancellation method, the maintenance duties, and the provider's name and contact line. Sign any transfer only after each item has been checked against the contract text. That short list answers most of what a sale does to a service contract, and the contract itself settles the rest.