What happens if something breaks before closing?
Clickbait question: “The Furnace Dies 24 Hours Before Closing — What Happens Next? Read This Before You Panic.”
Why this matters for Milton home sellers
If you sell a home in Milton, ON, the closing date is the finish line. But what if something breaks before closing? A broken furnace, burst pipe, or damaged roof can derail the sale, cost you money, and delay closing. This guide lays out exactly what happens, what you must do, and how to protect your sale — fast and without drama.
The simple truth — the contract controls
Your Agreement of Purchase and Sale is the playbook. In Ontario, most transactions use a standard form that spells out seller obligations, inspections, and adjustments. If an item breaks before closing, the contract decides who pays and what options buyers have. Do not guess. Read the contract and call your lawyer or real estate agent immediately.
Common last-minute breakages and the realistic outcomes
- Mechanical failures: furnace, hot water tank, HVAC. Outcome: buyers expect working systems at closing. They can demand repairs, a credit, or delay.
- Plumbing leaks and water damage: often requires immediate repair and potentially a damage assessment.
- Structural or roof damage from storms: may trigger insurance claims and extended timelines.
- Accidental major damage: foundation, fire, vandalism — can give the buyer grounds to rescind or renegotiate.
Your immediate action plan (do this within 24 hours)
- Stop panicking. You can fix most problems without losing the sale.
- Notify the buyer and their agent in writing. Transparency keeps trust and reduces legal exposure.
- Call your real estate agent and lawyer. They will read the contract and advise.
- Document everything: photos, videos, repair estimates, and invoices.
- Arrange a temporary fix if safe and cost-effective. Buyers prefer a working furnace to a credit when winter hits.
Three paths sellers take — and when each makes sense
- Do the repairs before closing
- Best when repairs are small to medium and you can get reliable vendors quickly.
- Pros: keeps buyer confident, prevents delay, often cheaper than credits.
- Cons: you front the cash and must coordinate trades.
- Offer a credit at closing
- Common when repairs are minor but you don’t want the headache of managing contractors.
- Pros: fast, clean accounting on closing statement.
- Cons: buyer might expect a larger credit than your estimate.
- Postpone closing or use a holdback
- Used for complex or structural issues, or when insurance claims are pending.
- A holdback is an agreed sum held in trust until repairs are certified complete.
- Pros: preserves sale and protects buyer and seller.
- Cons: delays closing and requires agreement from the buyer.
Insurance and casualty loss — what courts and lawyers watch for
If the damage is sudden and material (fire, flood), your homeowner’s insurance and the contract’s casualty clause come into play. Often the buyer can: 1) proceed and receive an insurance payout/credit; 2) postpone closing; or 3) cancel. Your lawyer will explain the clause in the contract and your obligations in Ontario.
How a local expert speeds this up — Milton-specific advantages
Selling in Milton gives you local options: reliable trades, fast municipal inspections, and lawyers who close on time. A top Milton realtor will:
- Have a trusted list of emergency plumbers, HVAC techs, roofers and restorers.
- Move fast on getting written estimates and permits.
- Negotiate holdbacks, credits, or repairs with buyers familiar with the local market.
This is the difference between a 3-day fix and a weeks-long headache.
Negotiation tactics that work (and don’t waste time)
- Be reasonable and transparent. Buyers are more cooperative when they see documentation.
- Provide three quotes if buyers push back. It shows you’re not lowballing.
- Offer a small credit for inconvenience, but avoid open-ended promises.
- Use a holdback with clear completion criteria rather than vague language.
The final walkthrough: sell-ready or delay
Buyers expect the property in substantially the same condition as when they made the offer, except for agreed changes. The final walkthrough is where they confirm repairs. If the issue persists, they may refuse to close until resolved or negotiate a final credit. Have paperwork ready showing repairs were completed professionally.
Closing adjustments and legal steps
On closing day, the solicitor’s statement will reflect any credits, holdbacks, or additional adjustments. If repairs were done, provide invoices. If a holdback was agreed, the lawyer will hold funds in trust per the instructions in the agreement.
Pricing your response: examples to guide quick decisions
- A $1,200 furnace repair in January: fix it. Buyer peace-of-mind > credit.
- A $10,000 roof repair with insurance pending: negotiate a holdback and follow insurer timelines.
- Cosmetic damage under $500: offer a small credit to avoid scheduling trades.
These are examples, not rules. Your contract and local counsel matter.
How to avoid pre-closing surprises in future listings
- Pre-inspect the property and fix known issues before listing.
- Maintain service records for the furnace, roof, and plumbing.
- Use clear ‘as-is’ clauses only where appropriate and legal.
- Work with agents who run a pre-closing checklist and can mobilize trades fast.
Why you need a Milton specialist on your team
Local expertise wins. The best local agent coordinates repairs, negotiates with buyers, and protects your timelines. They know Milton’s permit rules, typical buyer expectations, and the local trades that deliver on time. That reduces delays, avoids litigation risk, and often saves money.
Real example (anonymized, typical scenario)
A Milton seller had a hot water tank failure two days before closing in February. The agent got three bids within hours. The seller paid for an immediate replacement using the deposit. The buyer waived delay, closed on time, and the small expense preserved the sale. Fast action and local resources saved weeks.
Closing checklist for sellers — before the keys change hands
- Review your Agreement of Purchase and Sale. Note repair obligations.
- Confirm insurance remains active until closing.
- Have proof of any repairs and paid invoices ready for the lawyer.
- Confirm utilities and meter readings per the contract.
- Clear personal items not part of the sale and confirm included fixtures.
- Schedule and attend the final walkthrough.
Bottom line
When something breaks before closing, the contract governs, but speed and local expertise decide whether it becomes a crisis or a small detour. Fix small things fast, negotiate credit when needed, and use holdbacks for larger issues. In Milton, working with an agent who has emergency trades, a strong lawyer network, and a clear checklist gets you across the finish line — on time and with the sale intact.
Ready to move forward with confidence?
Selling a home in Milton isn’t the time to improvise. If you want a local pro who can mobilize repairs, negotiate holdbacks, and protect your closing date, contact Tony Sousa. He knows Milton, the contractors, and the lawyers who close on time.
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
FAQ — Closing Process and Last-Minute Breakages (Milton sellers)
Q: If something breaks after the home inspection but before closing, who pays?
A: It depends on your contract. If the Agreement required specific repairs, you must follow it. If not, negotiate with the buyer. Many sellers choose a credit or repair to avoid delays.
Q: Can a buyer back out if a major system fails before closing?
A: If the failure materially affects the property’s value or usability and the contract doesn’t allow the seller to repair, the buyer may have legal options. Consult your lawyer quickly; often parties negotiate a credit or holdback instead of cancelling.
Q: What is a holdback and how does it work in Milton?
A: A holdback is a sum of money held in trust at closing until agreed repairs are completed. The lawyer releases funds when conditions are met. This protects both buyer and seller and is common in Ontario transactions.
Q: Do I need to disclose a known issue that I plan to repair before closing?
A: Yes. Disclose known issues. Transparency reduces buyer pushback and legal risk. Provide repair plans and timelines.
Q: Will homeowner’s insurance cover damage that happens before closing?
A: Typically the seller’s insurance covers the home until closing. Check your policy and contact your insurer. For material losses, a claim may be necessary — involve your lawyer.
Q: How long can closing be delayed if I need repairs?
A: Closing can be delayed by mutual agreement. Common delays range from a few days to several weeks depending on repair complexity and insurance. Document any agreement in writing.
Q: Should I get a pre-listing inspection to avoid surprises?
A: Yes. A pre-listing inspection identifies issues you can fix before marketing. It reduces last-minute surprises and gives buyers confidence.
Q: Who pays for municipal permits or inspections if repairs require permits?
A: Typically the property seller pays to obtain and complete necessary permits prior to closing, unless the contract states otherwise. Confirm with your lawyer and the municipal office in Milton.
Q: How do I choose between performing repairs vs offering a credit?
A: Consider cost, timeline, buyer expectations, weather, and trust. For essential systems in winter (furnace, hot water), repair. For minor cosmetic items, a credit may be faster.
Q: How can Tony help if something breaks before closing?
A: Tony has a vetted list of Milton trades, fast-response contractors, and experienced real estate lawyers. He coordinates estimates, negotiates holdbacks, and protects your closing date so you close on time.
If you have a specific scenario, email tony@sousasells.ca or call 416-477-2620. Get a fast plan and keep your sale on schedule.
