Legal Question in Real Estate Law in California
Plumbing problems after sale of house
We sold a house that had been unoccupied for over 8 yrs. At the time of our vacating the property all utilities were in working order. When we decided to sell, we did a complete renovation inside and out--new: windows, doors, cabinets, counter tops, bathroom fixtures, heating and air,painting, garage door w/opener, front & back landscaping w/sprinkler system, floor tile and carpeting. New dishwasher, range, & water heater w/warranties. It was turnkey. Contractor found all systems to be in order before completing his contract. Buyers' lender inspector passed all. Buyer did not choose to have independent inspection. Buyer, a neighbor, aware the house had been unoccupied. Several days after moving in w/normal everyday use of plumbing, it was discovered that a drainage pipe was broken. I had ''no knowledge'' that there was a problem, the house having been vacant for 8+ years, so I could not disclose. Also it's possible that that pipe in this 40+ yr old house might have been intact at time of sale but ready ''to go'' when heavy usage began. At any rate, the buyer wants to sue. Since I had no knowledge of the problem and since she did not arrange for a fuller inspection than her mortgage lender supplied, does she have a case?
2 Answers from Attorneys
Re: Plumbing problems after sale of house
From all the factsgiven, and unless there are additional facts not given, I'd say the buyer's case is weak. Did you sell it yourself, or use an agent? Dud the neighbor use a buyer's agent? Have the agents been sued? If so, find out who is defending them.
Re: Plumbing problems after sale of house
Probably not. But that doesn't stop a lot of people from making claims.
If you and the buyer used the "standard" C.A.R. purchase/sale agreement, then it requires mediation prior to arbitration or litigation. Mediation is a non-binding process, before a neutral person (often, a retired judge), the purpose of which is to resolve the dispute without resort to arbitration or litigation. The contract provides that if either party refuses a request to mediate, then if that party later prevails at arbitration/litigation, that party forfeits his/her right to recovery attorneys' fees. Thus, mediation is always advisable.
If you and the buyer agreed to binding arbitration (per the contract), then the process of arbitration will be initiated with a written demand filed with an arbitration provider.
If you did not agree to arbitration, then you can expect the buyer to file a lawsuit in superior court.
We are real estate litigators with extensive experience litigating claims and defending complaints arising out of residential and commercial real estate transactions. If you would like us to review the underlying documents and provide a no charge consult, please feel free to call or email.
Good luck.
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