What Happens When Something Changes Before Closing?
A buyer tours a home, makes an offer, completes inspections, and agrees to purchase it.
Three weeks later, just before closing, the furnace stops working.
Does the buyer have to accept it? Is the seller responsible for fixing it?
The answer starts with the purchase agreement.
What Does the Purchase Agreement Say?
Many Michigan purchase agreements contain language requiring the seller to maintain the property in substantially the same condition until closing or possession.
The exact wording matters because not every purchase agreement is the same.
The example above highlights two important provisions: the seller's responsibility for the property's condition and the buyer's opportunity to complete a walkthrough before closing.
Remember that the provisions in your signed agreement, including any amendments, determine your actual rights and obligations.
Five Things That Could Change Before Closing
Even after inspections are completed, problems can arise.
The furnace quits. A heating system that worked during the inspection stops operating before closing.
A pipe bursts. Water damages the basement or finished living space.
Moving damage occurs. Furniture scratches flooring or movers damage walls and doorframes.
The roof leaks. A storm causes new damage after the purchase agreement is signed.
An appliance disappears. The seller removes a refrigerator that was included in the sale.
Each situation may involve different provisions of the purchase agreement.
Not every problem gives the buyer the same rights or remedies.
What About Normal Wear and Tear?
Some purchase agreements distinguish ordinary wear and tear from actual damage.
A small scuff from moving furniture may be different from a broken window, damaged flooring, or a failed mechanical system.
The word substantially is important, too.
A requirement to maintain the property in substantially the same condition does not necessarily mean every minor imperfection must be corrected.
The specific contract language and circumstances matter.
What If the House Suffers Major Damage?
Suppose a severe storm damages the roof, or a fire causes substantial damage before closing.
Michigan has a law called the Uniform Vendor and Purchaser Risk Act, found in MCL 565.701.
Unless the purchase agreement expressly provides otherwise, the law generally places the risk of substantial accidental property damage on the seller until either legal title or possession has transferred to the buyer.
If all or a material part of the property is destroyed before that transfer, without the buyer's fault, the buyer may have the right to avoid the contract and recover payments already made.
Different rules can apply after title or possession transfers.
This is particularly important when a seller remains in the home after closing.
Why the Final Walkthrough Matters
The final walkthrough is an opportunity for the buyer to check the property's condition before closing.
Here are five things worth checking:
New damage since the inspection
Heating, cooling, plumbing, and electrical systems
Appliances and fixtures included in the sale
Completion of agreed repairs
New leaks, moisture problems, or other changes
If something has changed, document it and notify your real estate agent before closing.
Depending on the agreement and circumstances, the parties may negotiate repairs, a credit, or another written resolution.
What Buyers and Sellers Should Remember
For buyers: An inspection contingency is not necessarily your only contractual protection concerning property condition. Review the maintenance, risk of loss, and possession provisions before signing.
For sellers: Continue maintaining the home after accepting an offer. If something breaks or damage occurs, communicate promptly rather than leaving it for the buyer to discover.
For a broader explanation of contract terms, read our Purchase Agreement Guide.
The home a buyer receives should meet the condition requirements agreed upon in the purchase agreement.
Understanding those requirements, documenting changes, and addressing problems before closing can help prevent costly disagreements.
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This article is for general educational purposes and is not legal advice. Contract language and individual circumstances determine the parties' rights and obligations.