Let us paint you a picture: it is only a handful of days before closing, the Buyer has just completed their last visit to the property you are selling, and soon after, you receive a text message from your agent listing out everything the Buyer found wrong with the property, asking to you respond.

One of the most common issues that arise in the waning hours before closing: a Buyer discovers some issue with the Seller’s property and now they want the Seller to either fix it or provide them with compensation. So, what are you obligated to do as the Seller, and more importantly, what should you do?

First things first: check your Agreement of Purchase and Sale. Did you agree to leave the property in a clean and broom-swept condition? Did you agree to have the property professionally cleaned? To repair damage caused by movers? To leave all chattels and fixtures in good working order? You are obligated to meet the terms you agreed-upon with the Buyer. If you agreed to a higher standard of cleanliness or repair, then you are required to meet that standard.

If you are able to remedy the issue before closing day, then you should. It is a good idea to take pictures and videos before and after your work, so that your agent can send proof that the repairs have been completed.

If you cannot complete what is required of you before closing, you may be on the hook to provide a credit to the Buyer on closing day. The amount you are required to pay depends on many factors, including (but not limited to):

• How much will it actually cost the Buyer to complete the repair after closing?
• Does the Buyer have to hire a professional, or can they complete the work on their own?
• How much time will it take to complete the repair/clean?
• Are there any special materials the Buyer will need to acquire in order to complete the repair?
• Is the property, or part of the property, unusable until the repair is completed?
• What degree of inconvenience is caused by the disrepair?
• Are the repairs cosmetic in nature?

Sometimes the Buyer is insisting that you repair something that you have no obligation to repair, for instance: something was clearly broken/damaged at the time all parties signed the Agreement of Purchase and Sale, maybe your hardwood floor has always been scratched, or the drywall has been dented in that spot for years.  Or maybe there is another reason why you feel the Buyer is being unreasonable: you have been flexible about the closing date or have been accommodating about visits. If you have been especially nice to the Buyer, this will make their eleventh-hour demands feel even more egregious. In this instance, consider adding another factor to the above list:

• What price do you put on your own peace of mind?

Even if you feel that the Buyer is behaving unreasonably and depending on the demand being made (of course), in many cases simply acquiescing or providing a “feel good” sum to the Buyer, will save you time, money, and worry in the long run.

On the other hand, the Buyer may try to take advantage of your reasonableness, and push for an unrealistic credit. If this happens, it is essential to have a skilled negotiator and advocate on your side.

In addition to legal advice, you can count on Kormans LLP to provide you with practical advice and guidance when navigating an eleventh-hour demand. We’ve got your back!

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