During the buying process a windstorm blew some shingles off the roof and the bank's appraiser wanted these items repaired before they'd sign off on the loan. The seller already being underwater on the loan refused any further concessions. I tried to escrow the repairs but since we're using a bond program for downpayment assistance the repairs needed to be done up front. After deciding we've already invested nearly $1K in the inspection/appraisal we ended up paying for them out of pocket with fingers crossed that nothing else would cause any problems closing.
We haven't closed yet, but if for some reason the deal falls through I imagine our only recouse would be through small claims court.