I think you are correct in that the house has to be in the same condition as it was when it was viewed and the deal struck. If something breaks the day before possession, it would be the responsibility of the seller to return the house to the same condition. In the case of the fridge, I don't think that means you need to put a new fridge in necessarily but you could put a working used fridge in of the same type/quality. If it was a stainless steel side-by-side with ice/water in the door, you couldn't find some old green fridge in someone's garage and slap that in there.
If, as someone said, it crapped out the day after possession, too bad for the new owners I guess. Sucky, but it is what it is.
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