Legal Advice- Ever get sued months after a closing?

Question

I just did. I closed on my primary residence in May and just got a letter stating that there is a leak in a shower and they are demanding $25k by the end of next week. Whats sad about this is I'm 99.9% sure that this is an issue from not having a threshold on the glass door and it is dripping on to floor. It looks like they got a contractor in there to come up with some kind of bs about ripping up a slab ect. The bathroom is brand new and was permitted which included underground plumbing/rough in/ and final inspections from the city. There was also nothing about this in the inspection report in the sale of the home. Any advice?

Everett Fujii · Answer

I wouldn't worry about it. Even if the letter came from a law firm on their legal letter head (which can be done for a couple hundred bucks) if the buyer had the opportunity to conduct inspections there is little to nothing they can do.

If an inspector came through and they had every opportunity to request repairs and you allowed them reasonable access to conduct inspections you have nothing to worry about.

It's been said many times and will probably be said even more. Caveat emptor (buyer beware) applies here.

This is more than likely, what you suspect. A buyer who got some nutcase GC in there to give them an inflated bid. And here's the rub. Even if there was a leak that required ripping up the slab. As long as they cannot prove you knew about it and hid it from them, and they had inspections done, there's nothing they can do. This is more than likely a scare tactic and I would ignore it or send them a nice response saying to go pound sand.

Ryan Kinsella · Answer

@Jd Martin, that is a such a good idea. Insurance didn't even cross my mind. I have already left a voicemail to my insurance guy. Thank you.

JD Martin · Answer

I agree, I would tell them nicely to pound sand. And if you have good insurance, you rarely worry about getting sued. Carry a PUP and you will feel like dancing 😂

PS: I have been sued twice by insurance companies in abrogation cases. One my insurer covered completely (daughter was at fault in a car accident) and the other cost me $500 plus my attorney fees to settle. Would have been cheaper if I had had a PUP, so it's something to think about.

Everett Fujii · Answer

@Ryan Kinsella

I understand. It can be incredibly nerve wracking.

But try not to worry to much. It really is up to you whether you want to respond or not. I've had lawyers suggest both options. Really just depends on whether they were a real pain in the butt when buying it or not and whether the response will even do anything or not.

What will more than likely happen (with or without a response) is they will send you another letter or two then go away.

Shawn C. · Answer

@Ryan Kinsella Thank you very much. I never heard of a umbrella policy called anything other than that. Thanks again for clearing that up for me.

Shawn C. · Answer

I know this is probably a dumb question but I am going to ask it anyway.

What is PUP insurance? I have never heard of that or that type of policy.

JD Martin · Answer

It's pretty cheap, too. I think I pay something like $275 annual for an additional $2 mil. With that on top of the portfolio insurance I'd have to do something pretty far out there to have any personal liability beyond my $1k deductibles.

Ryan Kinsella · Answer

@Everett Fujii thanks for the feedback. That's exactly what I was thinking, but its hard not to get worked up over this stuff.

Ryan Kinsella · Answer

Also I need to note, I used this shower every day until the sale and there was not any leaking. I did notice that if the glass door was not pulled in far enough that water would drip down the door to the floor. I did tell them about this.

Legal Advice- Ever get sued months after a closing?

Legal Advice- Ever get sued months after a closing?

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