Corrective Work
Definition and meaning of Corrective Work in real estate.
Corrective work refers to the repairs or modifications required to fix physical defects, building code violations, or safety hazards uncovered during a property inspection.
In more detail
When a home inspector identifies issues like faulty wiring, roof leaks, or structural problems, the buyer typically requests that the seller complete corrective work before closing. The scope and timeline of these repairs are usually negotiated between the buyer and seller through an addendum to the purchase contract.
Buyers often demand that licensed professionals perform the work and provide receipts as proof of completion. If the seller refuses to perform the corrective work, the buyer may negotiate a price reduction, ask for closing cost credits, or walk away from the deal if the contract allows.
Key facts
| Category | Buying & Selling |
|---|---|
| Triggered by | Home inspection or specialized inspection reports |
| Negotiated during | The contract contingency period |
| Performed by | Typically licensed contractors hired by the seller |
After an inspection reveals a faulty electrical panel, the buyer requests corrective work, prompting the seller to hire a licensed electrician to replace the panel before the final walk-through.
Frequently asked questions
Can a buyer cancel a contract if the seller refuses to do corrective work?
Yes, if the purchase agreement includes a home inspection contingency, the buyer can typically cancel the contract and receive their earnest money deposit back if the seller refuses to make necessary repairs.
Should corrective work be completed before closing?
Yes, corrective work should ideally be completed and re-inspected before closing to ensure the repairs were done properly and to avoid inheriting unresolved issues after taking ownership.