Are you wondering if the seller is responsible for any issues found after the sale is finished? The short answer is, no, the seller is not liable for repairs after closure unless otherwise stated in the purchase agreement or in the event of a failure to disclose known issues. Once the home sale is complete and ownership is transferred, repair liability usually shifts completely to the home buyer.
However, there are a few exceptions that buyers and sellers should know. Whether you’re in Portland, Atlanta, or in between, this Redfin Real Estate Guide will show you the key steps to keep the process smooth and on-board.
What will happen to repair liability after closing?
Once the closure document is signed and ownership is transferred, the buyer will generally assume all responsibility for the home, including its condition. This includes:
Plumbing, electrical, or structural problems cosmetic defects appliances and HVAC systems
Unless otherwise stated in the purchase agreement, the seller is not responsible for any repairs after closing.
If the seller could be liable
There are several situations where sellers may still be responsible for repairs and costs after closing.
1. Did not disclose known issues
If the seller knows the problem and fails to disclose it (for example, molds, leaks, foundation issues), the buyer may have a legal basis to sue for private or fraud.
2. Contract or Escrow Holdback after closure
Sometimes repairs are agreed, but not completed before closing. In that case, the funds will be retained in escrow and can be released once the work is complete. If the seller doesn’t follow them, they are still responsible.
3. Contractual obligations
If your purchase agreement includes a clause that says that the seller must make certain repairs, it must be legally complied even after closing.
How to protect yourself as a buyer
To avoid surprises:
Get your home inspected and review your reports and review repair clauses or escrow holdbacks before carefully requesting repairs before closing or negotiating credits. All Seller Disclosure Form
Tips for Sellers
To minimize liability:
Disclose all known defects (even if they appear to be minors) before closing a fully agreed repair, and before maintaining receipts and documents, do not leave any real estate or incomplete projects
FAQ
Is the seller responsible for repairs after closing?
Only if they fail to disclose a known issue or agree to fix something after closure. Otherwise, once the sale is final, the buyer assumes responsibility.
Can buyers sue sellers after closing?
yes. However, only under certain conditions such as fraud, misrepresentation, or breach of contract.
What is Repair Escrow?
This is an arrangement to cover repairs that are completed after a portion of the seller’s revenue will be held in escrow and are completed in the event of closure. If repairs are not made, the funds will be released to the buyer.
Should the seller fix everything the house inspector finds?
no. The inspection report can be used for negotiation, but unless agreed to the contract, the seller is not automatically required to revise everything.
Conclusion: In most cases, the seller is not liable for post-closure repairs unless it conceals a major defect to fix anything after sale or agrees to it in writing. Whether you buy or sell, solid contracts and clear communication are key to avoiding surprises.
