🟦 Real Agent Scenario
“We Can Just Walk If the Repairs Aren’t Right… Right?”
📘 Scenario:
A buyer is under contract and still within Due Diligence. After receiving the inspection report, the buyer’s agent prepares an SCR 525 Repair Addendum. The agent uses general language such as:
“Seller to repair items per inspection report.”
The seller agrees and signs the SCR 525. Repairs are completed prior to closing.
At the buyer’s final walkthrough, the buyer is unhappy with the quality of the repairs and tells their agent they want to terminate the contract, stating, “We’re still in Due Diligence, so we can walk.”
The agent now realizes the buyer may no longer have that right.
⚖️ Broker Guidance
Once the SCR 525 is fully executed, the buyer waives their Due Diligence right to terminate, and the SCR 525 replaces the Due Diligence section of the SCR 310. This is not a repair request, it is a contract amendment that materially changes buyer rights.
The agent must also clearly define what repairs are to be completed, not simply reference an inspection report. Repair language must be specific, measurable, and enforceable.
Example of proper repair language:
“Broken, torn, or missing roof shingles to be repaired by a qualifying, licensed roofing contractor.”
Agents must be extremely careful with the use of the words “repair” vs “replace.” These terms are not interchangeable and can represent a wide gap in scope, cost, and outcome. If the language is unclear, the seller may technically comply while the buyer expected a very different result.
Vague repair language significantly limits enforcement, increases the risk of disputes, and exposes both the agent and brokerage to complaints and potential legal action.
📝 Action Steps
What the agent should have done:
1. Clearly explained to the buyer that signing SCR 525 waives Due Diligence termination rights
2. Written specific repairs, tied to specific inspection items
3. Used precise language outlining the scope of work and contractor qualifications
4. Clearly distinguished between “repair” and “replace” when drafting terms
5. Inserted clear, descending deadlines for repairs, inspections, and cure periods
What the agent should not have done:
Assumed Due Diligence still applied after SCR 525 was signed
Used vague language such as “per inspection report”
Treated SCR 525 as a casual negotiation tool instead of a contract amendment
If the issue has already occurred:
Notify the broker immediately
Avoid making legal interpretations or promises to the buyer
Advise the buyer to consult legal counsel
💡 Broker Tip
SCR 525 rewrites the deal.
If repair language is vague and Due Diligence is waived, the buyer’s leverage disappears and the agent’s liability increases.
