Am I liable for damages after the house has been sold?

[Virginia H.]

Spring of 2017 I had two bathrooms for a single story rental (in CA) remodeled. Changed out the tub, shower head, piping, valve, lights, toilet, sink/cabinet -cosmetic update. The person I hired to do the work said everything was working properly and there were no leaks for a few days. So they went ahead and put up the sheet rock walls and tile, paint and finished the bathrooms. The house was vacant for 5 months or so. The house was sold in October 2017.

Last month (March 2018), the new owner reached out to my agent and said that the workmanship of the remodel was crappy and caused the leak behind the walls, and created mold to grow. They said they have been dealing with the issue since January and just now reaching out to me (two weeks ago).  I had no knowledge there was a leak or any mold in the house prior to selling the house. I disclosed the bathrooms were remodeled. (The house was rented out for 7 years prior without any issues.)

The new owners said they are giving me a chance to make things right. My agent asked me to put myself in the new owners shoes and advised that I consider helping out with damage costs and come up with agreement that I am not responsible for any future liabilities at that house. I do not feel I am liable for the damages at all. If I help out, even if it is only $1 or $2k doesn't that admit I am at fault? Am I liable because I hired the contractor that didn't have a contractor's license? Please advise what my options are to make it right for them.

[Mike Cumbie]

Disclaimer: I am not licensed in your state and my recommendation would be to consult an attorney who specializes in Real Estate law in your state.

That being said. How does "No" sound? For all you know they were taking showers with no fan and mold started to grow. If you disclosed any issues you knew about in good faith then I can't see how in the world you are liable for their house 7 months after you sold it. They had a due diligence period and if you were not "hiding" anything. Now if you knew there was an issue then get out your checkbook. I am sure someone at some time offered them a home warranty which they politely refused. 

Just my 2 cents and good luck! I am fairly certain that it is buyer beware (Although I don't know California). I have had clients come up with all sorts of stuff days after closing and my answer has always been the same. That's why you have a due diligence period.