What happens if something breaks before closing?
What if something breaks before closing? Don’t panic — act like the pro.
Quick answer: Who fixes what in the closing process
If an item fails before closing (furnace, roof leak, hot water heater, kitchen appliance), the outcome depends on your purchase agreement, inspection contingency, and final walkthrough. Most contracts hold the seller responsible for condition at closing unless the buyer agreed to accept defects. That said, practical fixes usually end with repair, credit, escrow holdback, or a delayed closing.
Common scenarios and what typically happens
- Appliance or system fails after inspection but before closing: Buyer can request repair or credit. If contract includes a final walkthrough contingency, buyer can demand seller fix it before handing over keys.
- Major structural or safety issue discovered day before closing: This can be a material breach. Buyer can pause closing, demand fixes, or cancel under contingency. Lawyer and realtor must get involved immediately.
- Cosmetic or minor issues: Often resolved by seller credit at closing or a repair allowance.
Step-by-step: How to handle a break before closing
- Document everything. Photos, videos, timestamps, and any inspection reports. This creates evidence for negotiation.
- Review your purchase agreement and inspection contingency. Know what you can demand. Look for clauses on “as-is,” repairs, and who bears risk until possession.
- Notify your realtor and the seller in writing. Don’t rely on phone calls alone.
- Get estimates. A quick contractor quote or service call gives a realistic repair cost for negotiation.
- Choose your solution: repair before closing, seller credit at closing, escrow holdback, or delayed closing until fixed. Use the approach that preserves value and your timeline.
- If the seller refuses and the issue is material, consider pausing closing or legal action. Consult your lawyer immediately.
Practical options every buyer should know
- Repair before closing: Best when seller cooperates and issue is straightforward.
- Seller credit: Seller credits buyer at closing to cover repair after possession.
- Escrow holdback: Funds held in escrow until repair proof is provided—common when time is tight.
- Renegotiate price: Reduce purchase price to reflect repair cost.
Avoid these mistakes
- Don’t sign off on closing documents if a material problem remains unresolved.
- Don’t accept a verbal promise—get repairs or credits in writing.
- Don’t delay documentation. Late evidence weakens your position.
Why having an expert realtor matters in the closing process
A strong agent anticipates these bumps and negotiates repair language into agreements. They coordinate contractors, get quick estimates, and pressure sellers and lawyers to close cleanly. That skill saves time, money, and stress.
Need a local expert who moves fast and protects your deal? Contact Tony Sousa — proven in tough closing scenarios. Email: tony@sousasells.ca | Call: 416-477-2620 | https://www.sousasells.ca
