Who pays for point-of-sale inspections and repairs?

Updated November 2026

Buyer or seller: who pays for point-of-sale inspections, sewer lateral repairs and code violations, and how escrows, credits and buyer assumption agreements work.

The short answer: the seller almost always orders and pays for the inspection itself. Who pays for the repairs is negotiable, and cities offer several ways to split it.

The inspection fee

Ordinances usually name the owner or seller as responsible. Fees run from nothing to a few hundred dollars. Bloomington, Minnesota charges $250, Shaker Heights $200, and New Jersey's state smoke certificate fee starts at $45.

Repairs: the four common arrangements

1. Seller fixes before closing. Cleanest for buyers and lenders.
2. Escrow at closing. Money is held until the work is done. Ohio cities set the amount: 100% in Maple Heights, 125% in Cleveland Heights, 150% in Shaker Heights.
3. Buyer assumes the work. The buyer signs a city form and gets a deadline: 90 days in Minneapolis, 180 days in Euclid, 12 months under Pennsylvania's MCOCA.
4. Time extension with a deposit. Common for sewer laterals in California, with deposits of $4,500 to $10,500.

Negotiating tips

• Get the inspection done before you list, so the result is priced in instead of discovered mid-escrow.
• Get two written repair quotes. Escrow amounts are based on them.
• If the repair is large, compare a credit against an as-is cash offer.

Get repair quotes or an as-is offer