Do I have to repair the A/C on a property that I sold after escrow has closed?
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Do I have to repair the A/C on a property that I sold after escrow has closed?
A few weeks after escrow closing the A/C started leaking. The realtor is aggressively seeking compensation from me the previous owner stating that the leak wasn’t disclosed. The inspector that he chose, as well as a licensed air conditioning repair service never found a leak prior to escrow closing and yet the realtor insists that I had prior knowledge which I absolutely did not. What is my legal responsibility?
Asked on September 3, 2019 under Real Estate Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Unless you had knowledge of the needed repair prior to closing and failed to disclose the fact to the buyer, you bear no responsibility for getting it fixed at this point.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
You would only be liable for the cost if you did have prior knowledge but did not disclose the leak: you are only liable for the lie, so to speak, for the fact of a leak, and not liable if you had no knowledge.
The buyer could try to sue you if they believe (e.g. due to what their realtor says) that you did know, but to win the lawsuit, they'd have to provide credible evidence in court to prove your knowledge.
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