Legal Question in Real Estate Law in Pennsylvania

Re: the root of it all

If you knew about problems with the drainage and did not disclose them in your Seller Disclosure Statement (required by PA law), or if the problems came up after you gave that Disclosure Statement but you did not inform the buyers, that would constitute fraud or at least misrepresentation. The Buyers could make a claim and recover against you in that case.

However, if you were never aware of this problem, once the settlement is completed, the buyers are responsible for conditions of the property. They might still begin a lawsuit against you, and you would have to defend, because there is no way to guaranty that someone will not sue.