If you sell the car directly to another consumer, then yes, the Starmark warranty remains in force. If you trade the car through a dealer - any dealer, not just an MB dealer - then the warranty is terminated.
I can't figure out why they do this, but it seems to be common with extended warranties. You might try calling the main MBUSA 800 number to confirm and determine if any paperwork is necessary to transfer the warranty. I think the answer is no, the new owner just shows up at the service desk with the car when it needs repair. The dealer will check the VIN to determine it is under Starmark.
- JimY
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