Reader,
🛠️ Repair Stips That Actually Protect Your Client
A Promise to Fix Is Only as Good as the Words That Describe It
A repair request is a contract term, and what it leaves out, the seller gets to decide. Buyers of a Roswell home learned that in Meyer v. Waite (Ga. Ct. App. 2004). After their inspection, the parties signed an amendment that cut the price by $4,000 and required the sellers to repair 42 items. Two of them: "repair or replace worn gutters," and "caulk/seal around all doors, windows, and areas of dissimilar materials on exterior" of the stucco house.
When the buyers' inspector went back to check the repairs before closing, the house was not ready for a thorough look. According to the buyer's affidavit, the gutters were clogged with "substantial garbage and clutter" due to work being done on the home, so their condition could not be judged. At closing, the sellers said every repair was complete and handed over receipts. After moving in, the buyers found the gutters rusted through, with a $3,439 estimate to fix them, and paint patches on the stucco they suspected covered old cracking.
They sued in 2002. The fraud claims lost: the buyers had the right to hire their own stucco inspector and did not, and the court said "the means of knowledge are at hand and equally available to both parties." Only the breach of contract claim over the gutters survived, and in 2004 it went back to the trial court for more litigation.
Two problems, and both are common. First, timing: the house was not ready to be thoroughly reinspected, and the buyers closed anyway. In most deals the timing problem is simpler: the repair deadline is so close to closing that a reinspection is never possible. Paragraph 8.c gives the buyer access through Closing, but access is worth little if the work finishes the day before. Second, the amendment named the work but did not ask for details of what was done, by whom, or with what materials. The buyers got receipts and nothing else. The amendment is your buyer's protection on repairs, and it only covers what it says: what gets fixed, by whom, how well, by when, with what proof, and what happens if the seller falls short. Leave one out and your buyer may not get the repair they think they negotiated, and may not win in court even after going to the expense of suing.
Writing the Request: Specific, Objective, Provable
Before you type a word:
- Check the GAR library first, both exhibits and stips. SS 310 (seasonal items that cannot be inspected yet) and SS 724 (removing fixtures and repairing the damage) may already say what you need.
- Do not rewrite what the contract covers. Paragraph 8.h requires agreed repairs to be done in a good and workmanlike manner before Closing, 8.c gives the buyer access through Closing to confirm them, and 8.g transfers the seller's transferable warranties (but do ask for the warranty information during Due Diligence, not at the closing table when all of the seller's belongings are already packed).
- Your words become your client's words. Under C.4.p.(6), the party a stip was written for confirms it "fully and accurately reflects that party's intentions" and accepts it as if they wrote it.
"Seller to address roof issues" has absolutely no value as an action. Address how? Which issues? By whom, by when, and proven how? Every repair line should answer WHO, WHAT, WHERE, WHEN, and WHAT IF, the same five parts any stip needs.
The class template puts it together:
"Seller shall complete the following repairs: [list], performed by a licensed/qualified [profession], and shall provide Buyer receipts, invoices, and photos, all on or before [date] (the "Repair Completion Date")."
What to spell out for each item
- Repair or replace? "Repair the water heater" and "replace the water heater" are two different checks.
- To what result? Tie the item to a measurable outcome: "so that the roof has no active leaks," "so that the basement stair railing is securely anchored and does not move when pushed."
- With what materials? For big items, name them. Legal Ease uses the roof example: shingle type, color, underlayment, tear-off or overlay, and whether damaged decking gets replaced.
- By whom? Name the trade and the credential (next section). "Seller's handyman" and "a contractor" both satisfy a request that names no one.
- With what permits? If the work needs a permit, say the permit gets pulled and closed out.
- With what proof? Receipts, invoices, photos, the contractor's name and license number, permit records, and any written warranty, all delivered to the buyer by a set date.
- With what warranty? Paragraph 8.g transfers warranties that are transferable by their own terms. If the contractor's workmanship warranty matters, require one that is transferable or issued in the buyer's name.
Subjective words invite a fight. Swap them out:
- Instead of "…to Buyer's satisfaction," use "…confirmed in writing by a [licensed or certified professional] that [named condition] no longer exists."
- Instead of "…repair as needed," use "…repair [each named item] at [location] so that [result]."
- Instead of "…fix the leak," use "…find and repair the source of the leak at ___ and repair the resulting water damage to ___."
- Instead of "…service the HVAC," use "…a written service report from a Georgia-licensed conditioned air contractor confirming the system cools to ___."
Only say "licensed" when a license exists
Georgia does not license every trade. The state's consumer office notes that roofers, painters, drywall contractors, and repair handymen are not required to hold a state license (Georgia Consumer Protection Division). Pool and mold professionals and chimney sweeps have no Georgia license either. Write "licensed roofer" and you have written a requirement no one can meet, or one anyone can argue about.
Instead, name what exists: a Georgia-licensed residential or general contractor, a licensed plumber or electrician, a conditioned air contractor licensed by the Construction Industry Board, a certification (CSIA for chimneys, IICRC for mold), or a roofing contractor carrying a stated amount of liability insurance. Verify at the Georgia Secretary of State license lookup.
The Repair Deadline
Set the repair deadline with the rest of the transaction in mind:
- Set a Repair Completion Date before Closing, not "prior to Closing." There are two good reasons, and the request should be written to serve both. First, things do not happen on time: contractors run late, parts get back-ordered, and a delay does not extend the closing date. With a closing-day deadline, unfinished work leaves the buyer two choices: refuse to close, or accept the property in a condition other than what the contract promised. Second, an earlier deadline gives the buyer time to make sure the work was done right, with the inspector or a specialist back out while the seller can still fix it. In Meyer v. Waite, the house was not ready to be thoroughly reinspected before closing. More often, the deadline leaves no room for a reinspection at all.
- Line it up with the lender. A lender-required repair from the appraisal runs on its own track. Until it is done, the lender cannot get the file out of underwriting, which can affect whether the buyer closes at all, or on time.
- Remember the final walk-through is a check, not a repair window. Finding a problem at the walk-through, the morning of closing, leaves your buyer with the fewest options.
The WHAT IF: Decide the Remedy Before You Need It
Write the remedy into the amendment during the Due Diligence Period. Once that period ends, your buyer has no leverage to set alternate terms for a seller's default.
Option 1: Money at closing
"If not completed by the Repair Completion Date, Seller shall provide Buyer an additional Seller Monetary Contribution Toward Buyer's Costs at Closing in the amount of $___."
The amount has to be more than the repairs would cost. If it is not, you should have asked for the money in the first place. It has to be enough to motivate the seller to finish the work. And it does not work as a remedy at all if the lender will require the repair itself to approve the loan. Check with the lender before you choose it: seller contributions also have limits by loan type.
Option 2: More time with a cost, or a way out
"If not completed by the Repair Completion Date, Buyer may unilaterally extend the Closing Date by the number of Days Seller fails to timely complete the repairs, with Seller paying Buyer $___ per Day of delay as a penalty and reimbursing Buyer at Closing for any cost to extend Buyer's mortgage rate lock. Alternatively, Buyer may terminate this Agreement by giving Notice to Seller; the Earnest Money shall be refunded to Buyer, and no per-Day penalty shall be due."
This one protects the buyer who needs the repair done before moving in, and it puts the cost of delay on the party causing it.
Make the repairs material
Courts usually will not let a buyer walk away over minor unfinished repairs. Legal Ease suggests stating that the listed repairs are material and that the seller's failure to correct all of them in a good and workmanlike manner gives the buyer the right to terminate. That sentence turns "the seller mostly did it" into a clear default.
Bad work counts too
A receipt proves someone got paid and says nothing about whether the problem is gone. The Meyer sellers handed over receipts at closing, and the gutters were rusted through anyway. Tie completion to the result ("confirmed in writing by ___ that ___ no longer exists") and give your buyer a set number of days after receiving the seller's proof to re-inspect and object. Otherwise a patch over a leak meets the letter of "seller shall repair the leak."
Or skip the repair
Sometimes the cleanest answer is no repair at all: a price reduction or seller contribution, and your buyer hires their own contractor after closing. Your buyer picks the contractor, controls the quality, and avoids the completion fight entirely. The tradeoff is cash out of pocket after closing and lender limits on contributions.
Escrows and holdbacks
Holding money back at closing for repairs to finish later sounds tidy. Many lenders will not allow it, and the closing attorney has to agree to hold the funds. Ask the lender and the closing attorney before you put one in an amendment.
If you are not sure which remedy fits, that is a broker conversation, or an attorney conversation, before having your client agree to anything.
Meyer is not the only one. In both of these Georgia resales, the seller's repairs looked finished before closing and failed afterward, and the buyer lost because of what was not checked before closing.
Atlanta Partners Realty v. Wohlgemuth (Ga. Ct. App., Sept 2022). A pre-listing inspection recommended added support beams installed "by a licensed structural and foundation contractor." The sellers used a handyman affiliated with the listing brokerage, who added a beam and some concrete pillars. The buyer's inspector saw the supports and said to "consult with seller about nature of this, monitor and repair as needed." Eight months after closing, the buyer found a massive leak, rot, and structural problems "not repaired properly," costing more than the purchase price to fix. She lost: she had the disclosures and her inspector's warning and did not follow up.
The better stip: When the fix calls for a specific professional, require that professional and proof of the work. Build in time for the buyer's own specialist to look before closing.
Reininger v. O'Neill (Ga. Ct. App., June 2012). Before selling, the seller found water coming into the basement and patched it himself with sealant and hydraulic cement. The disclosure checked "yes" for prior leakage and repairs, with no details, and the home sold as-is. After moving in, the buyers found water accumulating in the basement again. Their claims failed: the court said a homeowner who makes his own repairs is not a builder, and the as-is and merger clauses applied.
The better stip: A disclosure that says "repaired" is where the questions start. During Due Diligence, ask what was done and by whom, and have a professional confirm the result.
The common thread: once the deal closes, Georgia courts ask what the buyer could have found out before closing. The amendment, and the time it builds in before closing, is where your buyer finds out.
Before You Send the Amendment
- You checked the GAR library, both exhibits and stips, before writing original language. (Example: I got a call as I was writing this about a buyer needing to make the repairs prior to closing. It may be a bad idea, but there is an entire exhibit for that: F725.)
- Each repair item says repair or replace, the location, and the result required.
- Major items name materials and require confirmation that the work was permitted when a permit is required.
- "Licensed" appears only where Georgia issues that license, verified at the Secretary of State lookup; certifications or insurance are named where no license exists.
- Every condition is objective, with no "to Buyer's satisfaction."
- A Repair Completion Date is set days before Closing, not "prior to Closing."
- Proof is listed: receipts, invoices, photos, contractor name and license number, permits, warranties, and the date the buyer gets them.
- The buyer has a set number of days after receiving proof to re-inspect and object.
- The remedy is chosen: money at closing, extension with per-day cost and rate-lock reimbursement, or termination with earnest money refunded.
- The listed repairs are stated to be material.
- The lender has confirmed any seller contribution or holdback is allowed.
- Your buyer read the final language and understands what will and will not be done.
- Anything you are unsure about went to your broker or an attorney first.
Helpful Links
⚠️ REALsmart Reminder
A repair amendment is a promise with a deadline, and your buyer only gets what the words require. Say what gets fixed, who fixes it, how it gets proven, when, and what happens if it doesn't. Then check the work before closing, while your buyer still has leverage. When in doubt, run it by your broker or an attorney before it goes out.
A Personal Note
If you noticed there was no article from me last week, here is why: I was moving my daughter to Maryland for her first adult job.
I considered giving myself a hard time for not planning ahead. In fairness to me, her employer is the federal government, which gave us very little notice of her start date and suggested she not sign an apartment lease until she started. I also considered carving out time on the trip to sit down and write.
I chose instead to give myself a little grace and focus on my family. I truly think I made the best choice.
The upside of an empty nest: we will be restarting recordings of the REAL Smart podcast soon. More to come.
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Upcoming Classes
October is Til Death Do Us Part?? Probate, Divorce and Other Title Matters. I gamified the class and posts a vote for which game format to use. Family Feud and Wheel of (Mis)Fortune ran a dead heat so we will be playing both in class.
I am booked in multiple brokerage locations and currently trying to figure out if we can play the games effectively in a zoom class.
Other information for classes hosted by outside groups can be found on the smartstips.com website.
Stay Smart,
Cheryl Conner King
Founder & Instructor
REALsmart Real Estate School
Attorney | REALTOR® | CE Instructor
📍 Based in Georgia | Teaching Statewide
