What Is Our Liability? Know a Good Real Estate Attorney?

I have been a licensed Realtor since 2005 and thankfully have never had this problem come up before. I would hope that both sides can work this out in a very amicable manner. Litigation can be expensive. Real estate agents are not allowed to give legal advice or act as a lawyer in anyway. I'm sure your Realtor is diligently working on a solution to the problem but if it cannot be worked out between both sides, you may have to consider consulting with an attorney. I agree with the other post that said to get a second opinion on the leak problem.

Wow, I am sorry you are going through that. Unfortunately I don't know a thing about real estate law, but it seems to me that it should have been their responsibility to have everything checked out before closing. They should go after their inspector for compensation/repair since he missed it - not you! Sorry I am no help, but wanted to offer some moral support! We're in the process of selling and buying right now so I know how stressful it all is!

You filled out a sellers disclosure and according to your post you were unaware of the problem. So therefore, your disclosure was none. Their inspector did not find anything! Having said that, even though it would be very hard for you to be found liable at this point, that might not stop them from being litigous anyway. If they are not willing to let it go and want you to be responsible for it, you will than have to decide whether you invest money in a fix for them, or do you invest money in ongoing civil litigation (which I am sure they would not win in the long term, but they can still sue), the only winners would be the attorneys who drag it out! Try solving it through the Realtors, and maybe they would be willing to split the costs! It might not turn out to be as bad as you think it is in costs> We live in a society that is very sue happy, if you have the means to fight them in a possible suit, than by all means stick to your guns. However Sometimes, even though we know we are right,,,we have to put the big guns away, and waive the peace of mind flag!

I am an attorney but do not practice real estate law. I recall, although I am not sure and I am NOT giving you legal advice that you can rely on, that the previous posts are correct in that you are not liable if you did not know about the problem before the sale. That does not mean the other party could not file a lawsuit against you and try to claim that you knew about the problem and just covered it up, but that would be very hard to prove given that the inspector they hired did not find it. There's a good chance that it did not even exist when you sold the property; could be a fresh leak. I also agree with other posts that I have not been extremely impressed with contractors provided through home warranty companies - after all, think about it, if they were really good they would have their own clients and would not have to sign up with a program that cuts they pay just to get work, right? At any rate, the buyers should notify their insurance company, and that company would research the issue to determine whether action against your homeowners' coverage carrier is appropriate. Also, you can't really tell if there is a slab leak just by looking at something. And just because there is mold does not mean that the horrible "mold" problem exists that everyone is so scared of; every house has some mold in it; what we worry about are certain strains of mold and there are companies that actually would check the air to see if that exists. Overall, it is not your problem at this point. If, however, you determine that you want or need to discuss with a real estate atty, please contact me and I will see if I can locate a referral for you. Alternatively you can contact the Dallas Bar Association for a referral. If you can't afford an attorney, contact North Texas Legal Services for assistance. I would limit my conversations with all parties at this point and suggest that communications on this difficult subject should be in writing so that you can carefully consider your responses and have a trail of things actually said.

First, David Fair is an excellent real estate atty.
Secondly, I'm a real estate agent and have come across something similar regarding a cracked slab (fortunately, it was brought up prior to closing.) The home in this case was built in 1999 by a reputable builder. Even though the builder was not actively building in that subdivision any longer, I forged ahead to find someone who was familiar with that area, and could speak about the construction of the slab and soil conditions. The builder's representative went on to suggest there is a 10yr. structural warranty on new homes. I can't remember the specifics but there's a residential warranty commission thru the state of Tx that can help. I think the builders pay into this as a sort of insurence policy. If the agents on this transation know who the builder is, maybe this could be an avenue. Good luck!
N. M

I agree with the last poster. It's a done deal. It is their responsibility to check things out before closing. I would not accept any liability at this point. It is their house now. Is your agent saying you are responsible?

I too am not wise in the ways of real estate law, but I would say this. If it's determined by your agent, your lawyer or whoever, that you may be at least partially liable, if not more, I would demand a second opinion on the so-called slab leak. If they used the plumber from the warranty company, not saying all of them are the same, but I've had more than one instance where the plumber they sent out said the problem was something it was not, AND more often than not, the repair they said we needed just happened to not be covered by the warranty company. Hmmm. The last time that happened, I demanded a second opinion because my husband, while not a plumber, knew what the plumbers were saying was a lie, and it turned out that the repair needed WAS covered AND the first plumber was probably just trying to get an extra $600 out of us 'cause, I've been told, they make more money charging the home owner than what the warranty company will pay. Just a suggestion. Good luck!

What happened at inspection? Did they forego it? If not, then you best get on the phone with the inspection people.

Get yourself an attorney ASAP. this is not your fault. Even if say you did know about it. The inspection should have caught this. If they forewent the inspection, it's their prob. not yours.

Sorry, I may sound harsh but I run with rules.

I think at this point it is their responsibility. The house was inspected and no problem was found. Let thier warranty or homeowner's insurance cover it. If this would have been discovered prior to closing, it would be a different issue. But, the house is theirs now. Check the contract....I'm sure it says something in their about future liability.

Good luck!!!! =)

You shouldn't be liable. Their inspector should have found a slab leak and any mold that is there now would have been visible before. Like someone else said, they should get a second opinion from another plumber, but that's their problem, not yours.