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When it goes wrong

When the Seller's Repairs Are Done Badly

The contract, not the inspection report, sets the standard the work has to meet, and most of your leverage expires at closing.

The predictable failure of a repair you did not supervise

Seller-completed repairs are the instrument buyers reach for first and the one that disappoints most reliably. The reason is structural rather than moral. The person paying for the work is leaving the house, the person who will live with it has no say in who does it, and the only moment anyone looks at the result is a walkthrough held days before a closing that both sides have already organized their lives around.

Nothing published measures how often this goes wrong. No agency, trade body or academic dataset tracks completion quality, re-inspection failures or repairs discovered as inadequate at the final walkthrough, so any page offering a percentage is inventing one. What can be established is far more useful anyway: what standard the work is held to, what a second look can actually prove, and how much of your position survives the moment the deed records. This is not legal advice, and both the standard and the remedy depend on your state and on the contract you signed.

What completion standard actually applies

The answer is not "workmanlike" or "to the buyer's satisfaction." It is whatever your contract says, and in Texas the promulgated form says an unusual amount. Paragraph 7F of the Texas Real Estate Commission's One to Four Family Residential Contract, form 20-19, provides that unless otherwise agreed in writing, the seller "shall complete all agreed repairs and treatments prior to the Closing Date and obtain any required permits," and that the work "must be performed by persons who are licensed to provide such repairs or treatments or, if no license is required by law, are commercially engaged in the trade."

It then adds two obligations buyers routinely fail to collect on. The seller must "provide Buyer with copies of documentation from the repair person(s) showing the scope of work and payment for the work completed," and must, at the seller's expense, "arrange for the transfer of any transferable warranties with respect to the repairs and treatments to Buyer at closing." And it supplies a remedy: if the seller fails to complete agreed repairs before the closing date, the buyer may exercise the contract's default remedies or extend the closing date by up to five days.

Read that as four separate protections, each of which fails quietly if nobody asks for it. A qualified person did the work. Permits were pulled where required. Paper exists showing what was done and that it was paid for. Any warranty on the work is now yours. A buyer who accepts a text message saying it is handled has waived all four without noticing.

The honest caveat is that this is Texas. Other states' forms are far thinner here, and several say nothing at all about who may perform the work. If your contract does not contain a completion paragraph, the standard applied to the work is whatever your amendment wrote down, which is usually a one-line description of a repair and nothing about its quality.

The amendment does not contain the standard

This confuses people, so it is worth isolating. The document that records the agreed repairs is not the document that governs how they are done. The Texas Amendment to Contract, form 39-11, carries the agreed work in box 2 and then prints an express notice on the form itself: "Paragraph 7 of the contract governs the completion, delivery of documentation, and transfer of warranties of repairs and treatments."

In other words, the amendment points back at the contract. A buyer who reads only the amendment sees a list of repairs with no quality standard attached and concludes, wrongly, that they have no recourse on workmanship. A buyer who reads the paragraph the amendment points at finds the licensing requirement, the permit requirement, the documentation requirement and the warranty transfer.

There is a second lesson in the same form. The Texas contract instructs the parties not to write general phrases such as "subject to inspections" that do not identify specific repairs, and that instruction is printed in the promulgated form itself. A demand for "all repairs noted in the inspection report" is therefore not a stronger version of a specific list. It is a weaker one, because nobody can later establish what it required.

What a re-inspection can and cannot establish

The usual response to doubtful work is to send the inspector back. That is often the right move, but be clear about what the second visit can prove, because its scope is the same as the first visit's.

The published standards of practice describe a non-invasive, visual examination of the accessible areas of a property, based on the observations made on the date of the inspection and not a prediction of future conditions. An inspection, in the standards' own words, "is not technically exhaustive." The exclusions then do most of the damage to a buyer's expectations: an inspector is not required to determine the cause of conditions, future conditions, service life, code compliance or repair cost estimates, and is not required to move obstructions, dismantle components or enter unsafe areas. The American Society of Home Inspectors standard excludes substantially the same list, including "the causes of deficiencies" and "correction methods, materials or costs."

So a re-inspection can establish that the agreed work was not done, that it was done and remains visibly deficient, or that a related condition is still present. It is poor at establishing that concealed work was done improperly, and it will not, under the standards, tell you why the repair failed or what putting it right will cost. Those are exactly the two things a reader wants and exactly the two the standards expressly exclude.

Where the question really is about method rather than appearance, the person to involve is the trade that did the work or a licensed specialist in that system, not a generalist with a camera. And where permits were required, the permit record is a separate and more objective line of evidence than any opinion.

Leverage before closing

Before closing you hold real instruments, and they are strongest in this order.

  • The closing date itself. On the Texas form, incomplete repairs let the buyer extend closing by up to five days specifically so the work can be finished. That is a small lever with an outsized effect, because a seller who has arranged a move does not want it moved.
  • The documentation requirement. Asking for the scope-and-payment paperwork and the warranty transfer is not an escalation; it is the contract. Work that cannot produce paper is frequently work that was not done by the person it should have been.
  • Converting to money. If the repair is now going to be yours anyway, a seller credit toward your closing costs is cleaner than a second attempt by the same contractor, and it is subject to your loan program's contribution cap rather than to the seller's patience.
  • An escrow holdback, which readers reach for too readily. It is a lender product, not a negotiating tool. Fannie Mae will fund a completion escrow only for improvements postponed "for a valid reason, such as inclement weather or a shortage of building materials," requires funds equal to 120% of the estimated cost (100% with a guaranteed fixed-price contract), caps the work at 10% of the as-completed appraised value, requires completion within 180 days of the note date, and verifies it on Form 1004D. A seller who simply did not want to finish is not a valid reason.
  • The exit, if you are still inside a termination right. Once that window has closed, walking away is a default rather than a right, and the Texas contract's default paragraph lets a seller seek specific performance as well as retain the earnest money.

One lender rule is worth knowing even if you never ask for a holdback. FHA's Single Family Housing Policy Handbook 4000.1 permits a repair escrow for work that cannot be completed before loan closing only "provided the housing is habitable and safe for occupancy at the time of loan closing." Anything that fails that test has to be cured before the deal funds, whatever the two sides would prefer. If the badly done repair touches habitability or safety, the underwriter may force the issue for you.

Leverage after closing, and the two things that survive

After closing the picture changes completely, and not in your favor. The contractual remedies above were tied to performance before a closing that has now happened. The termination rights are spent. What remains is a claim, and a claim is slower, more expensive and much less certain than the five-day extension you could have taken.

Two assets do survive, and they are worth collecting before closing precisely because of that. The first is the transferred warranty on the repair, which on the Texas form the seller must arrange at their own expense. A warranty running to you from the contractor is a direct route to having the work redone that does not involve the seller at all. The second is the scope-and-payment documentation, which names who did the work and what they claimed to do. Without it, a post-closing dispute reduces to two recollections of a conversation.

Where the honest answer is that you need a lawyer, it is here: a repair that was agreed in writing, paid for, and demonstrably not performed is a contract question rather than a negotiation. Before that conversation, look up three specific things. The completion paragraph of the contract you signed and the exact wording of the amendment. Any survival clause stating which obligations continue past closing, since many contracts provide that most do not. And the limitations period in your state for breach of a written contract, because that clock starts without anyone telling you.

Frequently Asked Questions

Who is allowed to do the repairs the seller agreed to?

On the Texas promulgated contract, the work must be performed by persons licensed to provide those repairs or, where no license is required by law, who are commercially engaged in that trade. The seller must also obtain any required permits. Other states' forms are often silent on this, in which case the only standard is whatever the amendment itself wrote down, which is usually a description of the repair and nothing about who performs it.

What paperwork should I get for seller-completed repairs?

On the Texas form, two things, and both are the seller's obligation rather than a favor. Copies of documentation from the repair person showing the scope of work and payment for the work completed, and the transfer of any transferable warranties on those repairs to you at closing, arranged at the seller's expense. Collect both before closing, because after closing they are the only two assets that survive.

Can I delay closing if the repairs are not finished?

The Texas promulgated contract says so expressly: if the seller fails to complete agreed repairs before the closing date, the buyer may exercise the contract's default remedies or extend the closing date by up to five days to allow completion. Whether your own contract carries an equivalent clause depends on the form your state uses, which is the first thing to check.

Will a re-inspection prove the repair was done wrong?

Only within limits. The standards of practice define a non-invasive, visual examination of accessible areas based on the observations made that day, and expressly exclude determining the cause of conditions, repair methods and repair costs. A re-inspection can show that work was not done or remains visibly deficient. It is not designed to tell you why a concealed repair failed or what fixing it will cost.

Can I just ask for the money instead of a second repair attempt?

Often that is the better instrument, since it removes the seller's contractor from the problem. The constraint is your loan program's limit on contributions from anyone with a stake in the sale closing: conventional financing allows 3%, 6% or 9% by loan-to-value with 2% on investment property, FHA allows 6% of the sales price, VA caps concessions at 4% of reasonable value, and USDA is held to 6% by regulation.

Can the money be held back until the work is finished?

Sometimes, but it is the lender's decision rather than the seller's. Fannie Mae funds a completion escrow only for work postponed for a valid reason such as weather or a materials shortage, holds 120% of the estimated cost or 100% under a guaranteed fixed-price contract, limits the work to 10% of the as-completed appraised value and requires completion within 180 days of the note date. FHA allows a repair escrow only where the house is habitable and safe for occupancy at closing.