🟦 Real Agent Scenario
“The Walk-Through Is a Receipt, Not a Warranty”
📘 Scenario
A buyer completes inspections during Due Diligence. No major issues are found with the HVAC system or appliances. No repair addendum is negotiated for those items.
Right before closing, the buyer completes the pre-settlement walk through. The HVAC turns on, the dishwasher runs, the home is broom clean, and everything appears to be in working order. The buyer signs the CERE Pre-Settlement Walk Through form, confirming the property is being delivered in accordance with the contract.
Two weeks after closing, the HVAC system stops working completely.
The buyer contacts their agent, stating, “It was working at walk through. The seller should be responsible.”
The agent now has to explain why the signed walk through matters.
⚖️ Broker Guidance
The CERE Pre-Settlement Walk Through form documents delivery, not future performance. When the buyer signs this form, they are confirming that at the time of delivery, the property met the contract standard, including that mechanical systems and appliances were in working condition.
Once the buyer signs the walk through and proceeds to closing:
The seller’s delivery obligation has generally been met
Responsibility for systems transfers to the buyer after closing
A post-closing failure does not automatically create seller liability
This is where agents often confuse the purpose of SCR 525.
SCR 525 applies only to repairs that were specifically negotiated and written into the repair request prior to closing. It does not create a warranty or ongoing obligation for systems that fail after closing if:
The system was working at walk through, and
No repair obligation was written into SCR 525.
In other words, SCR 525 does not reopen responsibility for normal mechanical failure after closing.
📝 Action Steps
Why the Pre-Settlement Walk Through form matters:
It creates a written record that the property was properly delivered
It protects sellers and agents from post-closing claims
It clearly marks the transfer point of responsibility
What the agent should explain to buyers before walk through:
This is their final chance to confirm systems are operational
Signing confirms acceptance of delivery
After closing, failures generally become the buyer’s responsibility
What the agent should not do:
Suggest the walk through is “just a formality”
Imply the seller is guaranteeing systems beyond closing
Suggest SCR 525 applies to post-closing mechanical failure
💡 Broker Tip
The pre-settlement walk through is a receipt, not a warranty.
Once it’s signed and the deal closes, systems that later fail are typically the buyer’s responsibility unless a repair obligation was specifically written into the contract using SCR 525 prior to closing.
