Legal Question in Real Estate Law in Georgia
We sold our home a week ago today. Six days after closing, the buyers called the real estate agent to notify her that there was a slab leak in the home and demanded that we (the sellers) pay to have it fixed. We did have a previous slab leak in 2007 which we repaired and listed on the sellers disclosure. We had no idea of any present slab leak and have doubts that it even existed when we were living in the home (the house was vacant for a week before the new owners moved in). We sent the real estate agent copies of our water bills for the last 12 months to show her that there was no increase in our water bills to send out red flags that there may be a leak. We also sent her copies of water bills from the when we had the previous slab leak to show her that our water bills during that time were in the hundreds of dollars.
We honestly had no clue that there was any leak anywhere in the house. The new owners are threatening to sue us if we do not pay for this repair. I am trying to establish whether we are at risk of having to pay for this repair or lose a law suit they may bring against us.
Just to give a little more detail, the buyers did NOT have a home inspection done prior to sale and only spent a total of 15 minutes in our home before making an offer.
If we had the money to help them out, we would do so just out of kindess because we feel bad that this is their first home and they are having a problem already. However, we just don't have the money to pay for this. Would appreciate any advice.
2 Answers from Attorneys
Generally, under the facts as you stated, you have no liability. You put them on notice of a prior repair, have no knowledge of an existing or continuing problem, and the buyers chose to not do an inspection. The buyers certainly may make threats, but when they visit a lawyer to review the facts they may find out they don't have a case. They may be going on the "it doesn't hurt to ask/threaten" theory. Your best option is probably to tell them no, and leave it at that and in most cases it goes away. If they sue, obviously you will need a lawyer. What will harm your situation is going back and forth with them, and perhaps making offers that imply you are accepting some responsibility. It might be nice of you to consider that, but the reality is that it could come back to bite you. It appears they need to learn the lesson in how to buy a house.
While I'd want to read your disclosures and settlement paperwork to accurately answer, it sounds like the buyers have a very flimsy case, and you should ignore it unless they retain counsel or sue, in which case you should then see a lawyer. It is a very bad idea to say anything more than no, as what you say or write may be used later as an admission of responsibility by you. I am assuming you had your own lawyer review your sales papers before you signed them (as all sellers should do that), and if you did, the person to ask will be that lawyer.
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