Can A Buyer Request Repairs Or Credits From The Seller Based On The Property Inspection Report?

Can A Buyer Request Repairs Or Credits From The Seller Based On The Property Inspection Report?

Real Estate Law: Can a Buyer Request Repairs or Credits from the Seller Based on the Property Inspection Report?

In real estate transactions, a property inspection is a crucial step that allows the buyer to evaluate the condition of the property they are purchasing. The inspection report provides valuable information about the property’s structural integrity, systems, and potential defects. After receiving the inspection report, the buyer may discover issues that were not evident during the initial viewing of the property. This raises the question: Can a buyer request repairs or credits from the seller based on the property inspection report? In this article, we will explore the process of property inspections, the buyer’s right to request repairs or credits, negotiating repairs or credits, and the legal implications for both buyers and sellers.

Understanding the Property Inspection:

A property inspection is a detailed examination of the property’s condition conducted by a qualified inspector. The inspector assesses the structural components, systems (e.g., electrical, plumbing, HVAC), and other aspects of the property to identify any defects, safety concerns, or issues that may need attention. The purpose of the inspection is to provide the buyer with a comprehensive understanding of the property’s condition before completing the purchase.

The Buyer’s Right to Request Repairs or Credits:

Based on the findings in the property inspection report, the buyer has the right to request repairs or credits from the seller. These requests are typically made during the negotiation phase, after the buyer has reviewed the inspection report. The request may include specific repairs that the buyer would like the seller to address before closing or a credit that compensates the buyer for the cost of addressing the issues themselves after closing.

Negotiating Repairs or Credits:

The negotiation process for repairs or credits can vary depending on the circumstances and the parties involved. Here are some essential steps and considerations:

Reviewing the Inspection Report: The buyer should carefully review the property inspection report and make note of any significant issues or safety concerns that they wish to address with the seller.

Consulting with the Real Estate Agent: Buyers should consult with their real estate agent to discuss the inspection findings and the best approach for requesting repairs or credits.

Formalizing the Request: The buyer’s agent may prepare a formal repair addendum or credit request document detailing the specific repairs or credits the buyer is seeking from the seller.

Seller’s Response: Once the repair or credit request is submitted to the seller, the seller can respond with one of several options: agreeing to all or some of the requests, countering with different terms, or rejecting the request altogether.

Negotiating a Resolution: The buyer and seller may engage in negotiations to reach a mutually agreeable resolution. This may involve compromising on certain repair items or the amount of credits.

Inspection Contingency Deadline: In many real estate transactions, there is a specific deadline known as the inspection contingency deadline. If the buyer and seller cannot come to an agreement on repairs or credits before this deadline, the buyer may have the option to terminate the contract without penalty.

Renegotiation of Terms: In some cases, the buyer and seller may agree to renegotiate the terms of the purchase agreement to reflect any repairs or credits.

Legal Implications for Buyers and Sellers:

Both buyers and sellers should be aware of the legal implications of repair or credit negotiations:

Contractual Obligations: The terms of the repair or credit agreement should be formalized in writing and included as an addendum to the purchase agreement. This ensures that both parties are aware of their respective obligations and that the terms are legally binding.

Seller’s Responsibility: If the seller agrees to make repairs, it is essential that the repairs are completed by licensed professionals and to the buyer’s satisfaction before closing.

Credit at Closing: If the parties agree on a credit, the credit amount will typically be subtracted from the purchase price at closing. The buyer will receive a credit against the purchase price, reducing the amount they need to bring to the closing table.

Inspection Contingency: The inspection contingency protects the buyer’s right to request repairs or credits based on the inspection findings. If the seller refuses to address significant issues, the buyer may be able to cancel the contract and have their earnest money deposit returned.

Negotiating in Good Faith: Both parties should negotiate in good faith, meaning they are acting honestly and with sincerity. Engaging in deceptive practices during the negotiation process can lead to legal repercussions.

Potential Outcomes of Repair or Credit Negotiations:

After negotiation, several potential outcomes can occur:

Seller Agrees to All Requests: The seller agrees to make all the requested repairs, and these repairs are completed before the closing date.

Seller Agrees to Some Requests: The seller agrees to some of the requested repairs, and the buyer may choose to proceed with the transaction based on this agreement.

Seller Offers Credit: Instead of making repairs, the seller offers the buyer a credit at closing to cover the cost of addressing the identified issues.

Buyer Accepts Property “As-Is”: The buyer accepts the property in its current condition, without requesting repairs or credits from the seller.

Termination of Contract: If the buyer and seller cannot reach an agreement on repairs or credits, and the inspection contingency deadline has not passed, the buyer may choose to terminate the contract and have their earnest money deposit returned.

The Importance of Open Communication:

Open communication between the buyer and seller is crucial during the negotiation process. Both parties should be transparent about their expectations, concerns, and willingness to negotiate. Real estate agents can play a valuable role in facilitating communication and advocating for their respective clients’ interests.


In real estate transactions, the buyer has the right to request repairs or credits from the seller based on the property inspection report. The negotiation process can involve requests for specific repairs or credits to address issues identified during the inspection.

Repair or credit negotiations should be conducted in good faith, with the goal of reaching a mutually agreeable resolution. If an agreement cannot be reached, the buyer may have the option to terminate the contract within the inspection contingency period.

It is crucial for both buyers and sellers to work with experienced real estate professionals who can guide them through the negotiation process and ensure that all parties understand their rights and responsibilities.

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal advice. Buyers and sellers should consult with a qualified real estate attorney and/or real estate agent to understand their specific rights and obligations in their particular real estate transaction.

Whether you’re a property owner, investor, or business owner, Real Estate Law Corporation™ is your trusted partner on the path to legal success. Contact us today to embark on a journey of exceptional legal support. Our team of seasoned attorneys brings decades of experience to every case, demonstrating a profound understanding of real estate law, transactions, litigation, business intricacies, and estate planning. With a proven record of success, our portfolio is adorned with numerous landmark cases that stand as a testament to our dedication, expertise, and commitment to achieving favorable outcomes for our clients.