Within residential real estate transactions in Oklahoma, buyers often conduct home inspections and discovery property defects which need attention. Buyers are allowed to request that sellers address those issues before the buyer will continue with closing the transaction. 

Oklahoma real estate agents and brokers call these requests “treatments, repairs and replacements”, or TRRs. The Oklahoma Real Estate Commission (OREC) has provided a standard Notice of TRR form that most parties use; this form may not apply to your transaction so be sure to contact our firm for help.

Note: This issue is uncommon in commercial real estate transactions but would be allowed and enforced by a court if all parties agreed to make pre-closing property modifications. In the CRE context, a more typical post-PSA agreement would be a modification of the purchase price.

Here are the five most frequent questions we get asked about the residential property TRR process: 

(1) Are sellers required to agree?

Sellers are not required to agree to make TRRs, and most sellers will state that they will not make any such repairs when the market conditions are seller-friendly. In a buyer’s market, sellers may be more willing to agree to make TRRs. A common approach in any market condition is for the seller to agree to a limited number of treatments, repairs or replacements. This could include any TRRs the buyer has requested with a small financial limit of $1,000 (or other appropriate amount for the purchase price of the home). 

(2) Can the buyer terminate the purchase contract if seller does not agree to make repairs?

Typically, yes. However, it’s all about timing. Buyers must still have the right to terminate based on the inspection period. Make sure to review our article on terminating a purchase and sale agreement.

(3) Who pays for the repairs?

This is determined by the agreement of the parties. Sellers will often be willing make a few minor repairs or may look to give the buyer a credit towards the purchase price at closing rather than actually making the repairs. Most credits are minor on a standard single-family residential home sale, possibly 1-2% of the total purchase price, unless there is a significant defect found which the seller did not know about before the buyer conducted a home inspection.  

(4) If the seller agrees to make repairs, who performs the work?

Buyer notices of TRR should include a written request for licensed contractors to perform work. Otherwise, the seller may be entitled to do the work themselves. Sellers should consider anticipated cost, possible unexpected costs, timing, and personal ability when deciding whether to agree to buyer’s requests.  

(5) If the seller agrees to make TRRs, what effect does that have on the contract?

The TRR process formally amends the terms of the purchase contract. If agreed, it requires the seller to make changes to the property prior to closing. Be careful – any unauthorized changes to the property prior to closing may cause breach of contract, even if performed in good faith.

Extra: Seller beware!

Once the buyer and seller are under contract, the seller should not materially change the status of the property by making repairs unless the buyer specifically requests these changes through the TRR process or other amendments. Technically, an unauthorized repair to the property – even one that improves the value for the eventual buyer – may be a breach of the original contract terms.

To do before closing: Buyers should insist on re-inspecting the repaired items before showing up to closing. This is because the purpose of TRRs is to require the seller to change the property condition before closing.

Work with the Best Oklahoma Real Estate Attorneys

Have a question or concern about treatments, repairs and replacements in an Oklahoma residential real estate contract? Contact Avenue Legal Group to discuss your transaction and how best to proceed.



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