Who Is Responsible for Defects Found After Closing?

Who is responsible if home defects are found after the closing? While the answer might vary based on
the laws in your state, typically, a seller can’t be held liable for defects discovered after the closing if they
disclosed all known defects to the buyer during the transaction.

Most states require homeowners to complete disclosure forms stating the condition of their home. The
failure of a seller to disclose a known defect is a form of fraud – called concealment. That said, a seller is
only required to perform repairs that are specified in the purchase agreement.

To protect themselves, buyers should always include an inspection contingency in their purchase
agreement and have a home inspection done by an inspector of their choice prior to closing. That way,
any defects that are discovered can be negotiated during the purchase.

An added option for a buyer would be to purchase a home warranty to help protect themselves from
unexpected repair costs that could arise.