Buyer asking for repairs after closing!

[Derek T.]

I recently sold a renovated house that had an older but operable water heater. In the contract it was asked that all mechanicals were in working order at time of the inspection, in which they were and everything was signed off on saying it was operable. The final inspection and final sign off on the water heater was 3 days before closing. I got an email today (2 weeks after closing) that the water heater wasn't working when the buyer moved in and that they had to replace it. They are now seeking a refund for their purchase. How would you handle this?