🔧 What Is a Repair Clause in Real Estate?

A repair clause in real estate outlines which repairs the seller must complete before closing, how those repairs should be performed, and what happens if required repairs are not finished on time. It helps prevent disputes by setting clear responsibilities and standards for repairs discovered during inspections.

How a Repair Clause Works

The repair clause becomes relevant after the buyer’s inspection. It defines what the seller must fix, how the repairs must be completed, and the buyer’s rights if repairs are not done properly or on time.

Common elements of a repair clause include:

  • Repair obligations — specifying which issues the seller must fix.
  • Repair limits — caps such as “seller agrees to repair up to $1,000.”
  • Repair standards — requiring work by licensed professionals.
  • Verification — allowing the buyer to re-inspect repairs.
  • Documentation — requiring receipts, warranties, or contractor invoices.
  • Deadlines — repairs must be completed before closing.

The purpose is to prevent last-minute conflicts and ensure the buyer receives the property in the condition agreed upon in the contract.

Why the Repair Clause Matters

Benefits for Buyers:

  • Ensures important issues are addressed before move-in.
  • Prevents receiving incomplete or low-quality repairs.
  • Allows re-inspection to confirm repairs were done properly.
  • Provides recourse if the seller fails to complete repairs.

Benefits for Sellers:

  • Clarifies repair obligations and limits.
  • Protects against unreasonable repair demands.
  • Helps avoid disputes that could delay closing.
  • Provides a roadmap for completing inspection-related repairs.

Example of a Repair Clause

A typical repair clause might state:

  • The seller agrees to repair any health and safety issues identified in the inspection report.
  • All repairs must be performed by licensed professionals where required by law.
  • The seller must provide receipts and contractor invoices prior to closing.
  • The buyer may re-inspect the property to verify completion of repairs.
  • If repairs exceed the agreed repair cap (e.g., $1,500), the buyer may accept a credit or cancel the contract.

This clearly defines expectations and protects both parties from misunderstandings.

Why It Matters for FSBO Sellers

FSBO sellers often face repair disputes because they are not guided by a listing agent. A clear repair clause helps avoid confusion and keeps negotiations on track.

  • Prevents misunderstandings after inspection.
  • Limits repair-related renegotiation.
  • Protects sellers from open-ended repair demands.
  • Makes closing smoother and more predictable.

Sellers using Flat Fee MLS through Brokerless benefit from clearly defined repair responsibilities that reduce fall-through risk.

Frequently Asked Questions

Can a buyer cancel if repairs aren’t done?
Yes. Most repair clauses allow cancellation or credits if repairs are incomplete or exceed agreed limits.

Do sellers have to hire licensed professionals?
Often yes—especially for electrical, plumbing, HVAC, and structural work.

What if a repair misses the deadline?
The buyer may seek an extension, request a seller credit, or cancel under the contract terms.

Are sellers required to fix everything found in the inspection?
No. Repair requirements depend on the clause, negotiation, and state rules.