Legal Question in Real Estate Law in California
We recently sold our house in Southern California. A termite inspection was performed and termites were found. The property is an attached on one wall with another, so the termite company recommended simply treating the major spots. This was the case when we purchased the house as well.
This report was given to the seller through escrow and no dispute was raised. Now after the sale, they are threatening to sue stating that the house should have been tented. I am of the opinion that if they had a problem with our method of treatment that they should have addressed it in writing during escrow in the form of a request for repairs. All termite issues were disclosed and they signed for a copy of the report. If they didn't read that and comment, I can't see how that is my fault. Am I liable for anything?
3 Answers from Attorneys
You have no duty to the buyers except what is in the contract, plus the duty to disclose everything in the mandatory disclosure statements PLUS anything you know that could "materially affect the value or desireability of the property." If you did those things you have no liability.
I agree. If you disclosed that there termite problems, and they accepted, then I fail to see how you could be liable. This of course does not mean that they won't find an attorney willing to file a frivolous lawsuit against you. You would still have to defend that lawsuit.
This is a suit that, if brought, you are very likely to win. Since defending an winning will cost money you may not be able to recover (is there an attorney-fee clause?), you are perhaps best off negotiating a settlement that's favorable to you.
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