What Happens If A Seller Does Not Make Repairs Before Closing?
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Real estate is all about negotiating, from setting the sale price to agreeing on a closing date. However, some parties may agree to terms and then fail to fulfill their end of the bargain.
Buyers have several options if the seller does not make the agreed-upon repairs or fails to do them correctly. The right course of action will depend on your preference for the house, your finances, and the local real estate market. It will also depend on the behavior of the seller.
Here’s what you need to know about delaying closing, negotiating credits, and pursuing legal remedies. You will also learn to take steps to prevent disagreements through proper contract language.
Common Holdback Scenarios
Buyers typically make repair requests in their initial offers or through renegotiation after the home inspection. If you are entering the housing market, your real estate agent should walk you through your home inspection report. They can highlight any essential systems that need to be repaired.
Poorly functioning or broken systems affect the value of a house. Your real estate agent wants to ensure you pay a fair price for a quality home. This means they will negotiate if there are foundation problems, essential electric repairs, and issues with the septic or HVAC systems.
However, these negotiations are also important for securing a home loan. Your mortgage lender might require certain repairs before they clear the house for closing. They don’t want you to buy a house that immediately needs a new roof or requires updated plumbing. If you really want the house but your lender is concerned about certain issues, your Realtor will need to confirm that the seller is able and willing to make the repairs.
The housing market also determines whether sellers are willing to make repairs. In a hot market, cash buyers might be able to scoop up homes and then pay for repairs once they move in. An aging roof is not a dealbreaker for them. In 2025, the market is cooling a little. The average home is staying on the market for 54 days before going under contract, and more homeowners are lowering their prices to get offers. This means buyers can be more aggressive with asking for repairs, otherwise they can walk away, and sellers will have to start the listing process over again.
Just because the offer is accepted doesn’t mean you have the buy the house. Unwillingness to make repairs is a valid reason to walk away.
Your Legal Rights When Sellers Don’t Complete Repairs
Buyers have several legal protections if sellers fail to complete repairs or refuse to accept requests to start them. Your real estate agent should walk you through the various contractual obligations of the sellers that they agree to when they accept your offer. These legal guidelines can also help you make a course of action.
“When a seller does not make (agreed-upon) repairs before closing, they may think they are getting one over on the buyer, or even saving themselves some money,” says Mike Jeppson, at Home Smart in Pam Desert, California. “However, this is short-term thinking. This could lead to costly litigation and end up costing the seller much more money compared to making the repairs when they should have.”
Repair Agreements are Legally Binding
When a buyer reviews the home inspection report, they will outline a list of reasonable repairs that need to be completed before the closing day. If the seller accepts these terms, the agreement is legally binding. Failure to make the repairs can be considered a breach of contract. This gives the buyer multiple options, ranging from terminating the deal (and getting their earnest money deposit back) to filing a lawsuit against the seller for failing to perform.
Inspection Contingencies Also Protect Buyers
Home inspection contingencies are designed to protect buyers who discover problems with the house that the seller does not want to repair or is unable to address. In most cases, these contingencies give sellers a window (usually up to 14 days for residential properties) to complete their inspections and negotiate repairs.
For example, a buyer might discover a severe termite presence, which they ask the seller to mitigate. The seller can agree to the mitigation terms or negotiate a concession – usually a lower price – to move the deal forward.
Inspection contingencies protect both buyers and sellers. They allow buyers to back out if they discover major repairs they can’t handle while also protecting sellers from receiving unrealistic requests – like completely replacing an old but fully functioning HVAC system. Read this contingency carefully before making an offer.
State Disclosure Laws Protect Buyers
Almost every state has disclosure laws that require sellers to state any known defects or necessary repairs on the home. You can look up your specific state laws online. Failure to disclose known issues can be considered fraud or misrepresentation.
This is also why some sellers are more willing to make repairs. If a previously unknown issue is discovered, it becomes known. When a buyer walks away and a seller relists the home, they need to disclose the issue in the new contract. The next buyer is just as likely to request repairs before closing, so avoiding the problem will only delay the home sale.
This isn’t always the case. In some instances, cash buyers can overlook problems on properties they want. They might be fine taking on the repair costs. However, in other markets, known issues are better off being repaired.
Right to Terminate vs. Right to Remedy
Both buyers and sellers have a right to terminate contracts if the other parties can’t agree on a path forward. If a seller refuses to complete repairs or cover the repair costs in the new contract, the buyer can terminate the deal.
The right to remedy allows one party to address the issue by compensating the other. For example, if a seller agrees to replace the roof but the contractors won’t come out until after the closing day (resulting in a delay), the buyer might request a remedy of covering the costs of temporary housing.
Documentation and Specificity Can Help You
If you encounter unexpected repairs when reviewing the inspection report, ask your real estate agent to review the repair agreement with you. They should go over exactly what they are asking the seller to do and how they can prove that the work is complete. For example, it is better to ask a seller to “repair or replace the leaking kitchen faucet” instead of writing a vague “fix plumbing issues” request in the contract.
Your Realtor should also review how they will confirm the repairs were made. This could range from scheduling follow-up inspections to requesting photo and video evidence of repairs.
If you aren’t sure where to start with a difficult seller, consult a real estate attorney. They might provide additional insight and options to help you and your Realtor.
Immediate Options When Repairs Aren’t Completed
Negotiating repairs is only the first part following the home inspection. The seller then has to make the repairs and prove they were completed thoroughly and as requested by the buyer.
If the seller refuses to make repairs or ignores the requests, the buyer can take steps to request compensation or terminate the agreement.
Delay the Closing Date
This is the first step if the homeowner refuses to make repairs. The buyer can negotiate a postponement to allow time for repair completion. This is particularly useful if the mortgage lender requires the repairs or the seller proves they are actively taking steps to hire contractors and get the work done. Delays usually range from five to 30 days.
This tactic can also be helpful to put pressure on the seller. If the homeowner is eager to close, they will want to get through the repair process quickly. Closing delays can be frustrating for all parties and prevent the sellers from moving on.
“If a seller contractually agreed to repairs and they are not completed before the closing appointment, the answer is simple: there will be no closing,” says Desari Jabbar at Desari Jabbar Realty Group in Stone Mountain, Georgia. “The buyer can simply refuse to close until the repairs are completed. And they would be within their right to do so.”
Buyers can then also ask sellers to cover unwanted costs accrued because of the delay. They may ask the seller to pay for temporary housing, mortgage rate lock fees, and other moving expenses. The longer the delay, the more costs can add up.
Negotiate Closing Credits
This is the next step. The buyers may agree to accept closing credits instead of repairs, as long as the mortgage company approves of the sale. The buyers will then handle the repairs on their own post-closing.
Buyers typically request between 120% to 150% of the estimated repair costs to account for buyer inconvenience and potential cost overruns. Sellers can negotiate the total repair costs they are willing to pay.
Some buyers prefer credits instead of asking sellers to make repairs before closing. This is because they would rather have control of the repairs and confirm they were done well. The popularity of closing credits also might vary by region.
“On the California coast, most sellers don’t make repairs before closing,” says Megan Kilmer at Dream Catch Properties in Capitola, California. “They often need the money, and that’s why they are selling. You should instead go for a credit at closing for repairs, or you can ask them to pay down points if you have a loan.”
Escrow Holdback Arrangements
You can also discuss holding funds in the escrow account until the seller completes the agreed-upon repairs. The seller might receive most of the proceeds from the sale but not the portion withheld until the repairs are complete.
In most cases, the title company or a real estate attorney will hold on to 150% of the estimated costs for 30 to 90 days. If the seller does not make the repairs within the deadline, and doesn’t show any indication that they intend to, the buyer receives the money to cover the repairs themselves.
This could be an option if you want to close on the house but still expect the seller to pay for the repairs.
Demand Letter and Formal Notice
Your real estate agent or lawyer can also send a demand letter to the seller or seller’s agent. This letter will provide written notice of the breach of contract and demand compensation within a specific timeframe.
The letter should include a reasonable request for repayment, either requesting the seller to make the repairs or agree to a new closing price. This formal letter is usually the final step before either walking away from the deal or starting a lawsuit against the seller.
Final Walkthrough Rights
Buyers also have contractual rights to additional home inspections and can give final approval of any completed work before releasing escrow funds. Pay close attention to any requested repairs and the state of the house during the final walkthrough.
Even if the closing date is within a few hours, it’s not too late to make requests of sellers. For example, if the house is full of junk left by the former homeowner, you can have the seller pay for cleaners. You can also renegotiate closing costs that pull from the seller’s proceeds if the house is not delivered in the agreed-upon condition.
These buyer requests may be countered by the seller, continuing the negotiations until everyone is satisfied with the deal.
When to Walk Away from a Real Estate Deal
In many cases, a buyer and seller will work together after the home inspection to determine what needs to be repaired and what the buyer can fix themselves.
However, there are times the buyer might decide to walk away entirely. Here are a few signs that your dream home could be a nightmare if the seller refuses to address your concerns.
There is a Material Breach of Contract
A material breach occurs when the issues are so severe that the home sale is no longer reasonable. For example, there could be safety issues that make living in the home hazardous. There could be significant issues that exceed three percent of the home’s value. The repairs are so expensive or difficult that it would be unfair to buy the house or reasonably negotiate a better deal for it.
The Seller Misses Inspection Contingency Deadlines
It is the seller’s responsibility to accommodate home inspections in the days following an accepted offer. If the purchase agreement says the buyer has 14 days to have an inspection, the seller needs to open their home during this time. If the seller rejects all inspection windows and seems unreasonably difficult, they may have something to hide. The buyer might be better off walking away.
You Can Recover Your Deposit
Many buyers try to move forward with the sale because they worry about financial losses if they pull out. If this sounds familiar, talk to your Realtor about recovering your funds. It is better to walk away from a difficult seller or house with major problems than to push forward with a bad situation.
Earnest money allocation varies, so check your local laws to see what you are entitled to.
It Makes Sense for the Market
There might be times when it’s better to walk away from a deal instead of trying to negotiate with a seller. If there are other homes in your area that you are interested in, it might take less work and involve less stress to walk away and start the search again. However, if you really want the house, you can advocate for repairs or request a price reduction.
For some buyers, walking away from a deal is the last resort. Others don’t want to deal with difficult sellers while also going through the moving process.
Talk to Your Real Estate Agent Throughout the Buying Process
Every home purchase is unique and comes with issues and repairs that sellers need to address. Some of these problems are simple cosmetic issues, while others are serious – like a faulty foundation or broken air conditioning unit. You can work with your Realtor to determine what problems need to be addressed and which ones can be overlooked in the best interest of reaching the closing table.
Know that the issues won’t go away unless the seller addresses them or compensates you for them. You will need to live in the house with these repairs, so make sure they meet your expectations.
Turn to FastExpert to find a real estate agent you can trust. An experienced Realtor will act in the interests of buyers and advocate to get the repairs they need. This can protect both the safety and finances of their clients. Use FastExpert to read profiles, learn about agents, and find good fits for your needs. We can make finding a Realtor easier so you can focus on finding your future home.
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