Should the seller or buyer have to pay for repairs asked for by the buyer’s lender?

UPDATED: Sep 30, 2022

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Should the seller or buyer have to pay for repairs asked for by the buyer’s lender?

I’m currently selling my house. As part of one of the final inspections, we were told that the buyer would not be able to get a loan unless 3 things were fixed in the house calling them

Asked on May 30, 2016 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

There's legal and there's practical: sometimes, the two things clash. Based on what you write, it does appear that legally, the buyer is obligated to make any repairs: the sale is "as is," and the contract states that the buyer must make repairs required by the lender.
But as a practical matter, if the buyer will not make them, or cannot afford to make them, and loses the loan, the sale will fall through. You should be able to keep the earnest money if that happens, but depending on how much that is, it may or may not be adequate compensation for losing a sale, having to re-market the house, and having to then carry the house (e.g. taxes, utilities, insurance, and mortgage [if any] for several more months until you can find a new buyer and close on the sale. Depending on the cost of the repairs, it may be better to pay to have them done, or try to negotiate to split the cost with the buyer, to get the sale done.

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