What a Contract’s Repair Clause Means for Homebuyers

The repair clause ensures the home you buy is in good condition.

Whether you’re buying or selling a home, evaluating the property’s condition is an important step in the contract-to-close process. The contract allows the buyer to go through the inspection period with three different options, those are the repair clause, due diligence clause, or as-is clause. Today we’ll be covering the repair clause, and the other two will be discussed in future videos.

With the repair clause, you are agreeing to allow the seller to make certain contractually obligated repairs. This means if they do not make the repairs, you have the option to back out of the contract. Contractual obligations typically include the heating, air conditioning, plumbing, and electrical, water supply, and wastewater systems. These need to be in operative condition, meaning they have to work how they’re supposed to.

In addition, the roof must be free of leaks, the home cannot have any structural concerns, and environmental concerns must be addressed. Environmental concerns might include lead-based paint (if built before 1978), mold, and Radon. 

As a buyer, you have a certain amount of time to get an inspection, and the seller has a certain amount of time to respond to any items requested to be repaired. Fortunately, the contract includes the necessary details for all parties. When we meet to write an offer or to list your home, we will talk through both the seller and buyer obligations concerning the repair procedure clause in greater detail.

If you have any questions or would like any information, feel free to reach out to me. I look forward to hearing from you soon.