Earnest Money When Seller Refuses to Make Repairs
- Request repairs of the seller; which they are not obligated to perform.
- Request a price reduction.
- Perform the repairs yourself in escrow with the appropriate approvals.
- Cancel the contract.
Is a seller required to make repairs?
Sellers have a legal obligation to either repair or disclose serious issues with the home. If the repair request is a big one—and it’s not a surprise to them—they’re almost always going to be required to spring for the cost or lose the sale.
How long does a seller have to make repairs?
When he/she submits a request for repairs, the buyer sometimes asks for particular contractors to do specific work. The seller has three days from the time of receipt to respond. In that period, the buyer cannot change his/her request.
What repairs should a seller make?
Common seller repairs after home inspection
- Major electrical issues that are safety or code issues.
- Plumbing, drainage, sewer, septic, or water issues (or well water issues, if applicable)
- Mold or water damage.
- HVAC problems that affect home comfort.
- Leaking roofs or missing shingles.
- Termite and pest damage.
Can a seller credit a buyer for repairs?
A seller credit can be used to pay for repairs, but if the repairs come to less than expected, the buyer isn’t allowed to keep the extra cash. You might have to give the money back to the seller or see if you could use it to purchase points from your lender.
Do you have to fix everything on a home inspection?
And rest assured, there’s no need for you to fix everything a home inspector thinks could stand for improvement; a home inspection report is not a to-do list.
When should you walk away from a real estate deal?
6 Reasons to Walk Away From a Home Sale
- The house appraises for less than what you’ve offered.
- The home inspection reveals major problems.
- The title search reveals unexpected claims.
- The house will cost a fortune to insure.
- The deed restrictions are way too onerous.
- Work has been done without a permit.