Updated October 29, 2026
Under California's standard purchase contract, you sell the home as-is, and "Seller has no obligation to agree to or respond to" the buyer's repair requests (C.A.R. Residential Purchase Agreement, revised 6/26, paragraph 14B). But until the buyer removes the investigation contingency, 17 days after acceptance by default, the buyer can still cancel under that contingency and is generally entitled to the deposit back. So a repair request is a negotiation. Our approach: if an item is easy to fix, we usually suggest the seller fix it; in other cases a credit is simpler for everyone. Which way to go is a judgment call on each item.
What the law requires no matter what the buyer asks
Item | Rule | At the sale |
|---|---|---|
Smoke alarms | Seller gives the buyer a written statement of compliance | |
Water heater bracing | Seller certifies in writing that the heater is braced | |
Carbon monoxide detectors | Required in homes with a gas appliance, fireplace or attached garage; disclosed on the Transfer Disclosure Statement | |
Water-saving plumbing fixtures | Homes built on or before January 1, 1994 were required to replace non-compliant fixtures; at sale, the seller discloses whether any remain |
Who pays to bring the smoke alarms, CO detectors and water heater strapping up to code is negotiable: the purchase agreement has boxes for buyer, seller or both. The statements of compliance are the seller's to deliver.
How the request and response work
- The buyer inspects during the investigation period, 17 days after acceptance unless the contract says otherwise.
- The buyer asks for repairs or credits on C.A.R. form RR, Request for Repair.
- You respond: agree, agree to part, offer something else, or say no. Your agent uses form RRRR, Seller Response and Buyer Reply. You don't have to respond at all.
- The buyer decides. If you agree to everything and the buyer signs, that also removes the buyer's investigation contingency. Otherwise the buyer removes contingencies in writing on form CR-B, or cancels while the contingency is still open.
- If the buyer does nothing, the contingency doesn't expire on its own. After the deadline, your agent can send a Notice to Buyer to Perform, which gives the buyer at least 2 days to act before you can cancel.
Read what the buyer actually signs: a repair agreement or an attached CR-B can remove other contingencies too. If they aren't removed in writing, the loan and appraisal contingencies stay open.
Fix it or give a credit
You fix it | You give a credit | |
|---|---|---|
Works well for | Small, clear items a contractor can do quickly | Bigger or uncertain items, or when time is short |
What the contract requires | Work done in "a good, skillful manner," following permit rules, with invoices, receipts and a written list of the work to the buyer before the final walk-through (RPA paragraph 15) | Written into the contract and paid through escrow |
Limits | Time before closing, permits, and anything the buyer's lender requires | The buyer's lender limits credits, and they can only go toward the buyer's closing costs and prepaids |
After closing | The buyer may question the quality of the work | No contractor work to answer for; your disclosure duties still apply |
On credits: for Fannie Mae loans, a seller credit counts toward the buyer's closing costs and is capped at 3%, 6% or 9% of the price depending on the down payment. Anything above the buyer's actual closing costs is treated as a sales concession and subtracted from the price the lender uses for the loan (Fannie Mae B3-4.1-02). The lender doesn't treat a "repair credit" any differently: it can't be paid to the buyer in cash for repairs. Jumbo lenders set their own limits, so ask the buyer's lender before agreeing to a number. If the credit is larger than the buyer's closing costs, a price reduction may be the cleaner answer. See seller credit or price reduction.
How to decide on each item
- Was it already disclosed? If the buyer knew about it from your disclosures before making the offer, you have more room to say no.
- Is it a safety or code item, or something the buyer's lender will require? Those usually need an answer.
- Is the price realistic? Get your own contractor's quote before agreeing to a number from the buyer's side.
- Is it cosmetic? Worn carpet, dated fixtures and paint the buyer saw at the showing are usually a "no."
- What happens if the buyer walks? If the buyer cancels, the inspection reports from this escrow have to be disclosed to the next buyer (C.A.R. Seller Property Questionnaire, revised 6/26). An issue doesn't go away by relisting.
That last point is one reason we generally recommend a pre-listing inspection: you learn about problems before a buyer's inspector does, and you can fix or disclose them on your terms. See which repairs are worth making before you sell.
Cash buyers
Cash buyers have no lender limits on credits, and in Irvine they're common at higher prices: over the 12 months through September 2026, 41% of resales from $2 million to $3 million and 48% of those from $3 million to $5 million were paid in cash, from Irene and Ricky Zhang's review of CRMLS closed resales. A cash buyer can still cancel during the investigation period.
FAQ
Do I have to make repairs after a home inspection in California?
No. Under the standard purchase agreement, you sell as-is and don't have to agree to or even respond to a repair request. But while the investigation contingency is open, the buyer can cancel and is generally entitled to the deposit back.
Is it better to give a credit or make repairs?
It depends on the item. Easy, clear fixes are often best done by the seller. Bigger or uncertain items are often simpler as a credit, as long as it fits the buyer's lender limits and closing costs.
What repairs are required to sell a house in California?
Smoke alarms and water heater bracing, with written statements to the buyer, and carbon monoxide detectors where the home has gas appliances, a fireplace or an attached garage. Who pays for any upgrades is negotiable.
What if the buyer cancels after the inspection?
If the investigation contingency was still open, they're generally entitled to the deposit back; escrow releases it once both sides sign the cancellation. The inspection reports from that escrow must be disclosed to your next buyer.
Getting ready to sell? Start with what your home is worth, and what's worth fixing first. Get your home value.
About Irene and Ricky Zhang: RealTrends Verified ranks Irene and Ricky Zhang the #1 small team in Irvine by both sales volume and transaction sides (2026 City Rankings, based on 2025 production). Contract terms are from the C.A.R. Residential Purchase Agreement revised 6/26. This article is general information, not legal advice.
