After sale liability

[Gary G]

The buyer of a home I sold 4 months ago just informed that she needed to replace the septic system and associated plumbing since it failed due to being overrun with tree roots and other misc problems. I did not know that the septic system had a lurking problem before I sold the home. The septic company who certified it for me prior to the sale has now gone bankrupt.

How much liability do I have to pay for the new septic system especially since I was never consulted about the problem prior to the new owner having it replaced?

[Dan Auito]

I would consult with a local attorney to get clarity on the issue. Everything is negotiable at this point. Did you make a killing as a result of the sale? If so you might offer a token amount otherwise they'll see you in court.

If you had no knowledge and relied upon the septic co than those buyers could well be out of luck.

Lawyers do go after the fat rabbits so you are now the rabbit they will chase.

[berk]

I agree with Dan on offering a token. You should have filled out a seller's disclosure statement when you sold the property and they would have to prove that you DID know there were septic issues, which you didn't. You should be ok.

Another thing to look at is the septic company's insurance company. Although the septic company might be out of business, they did have/or should of had an insurance policy on any of their work performed while they were in business. If it was a problem as a direct result of the work done by the septic company, their insurance company could still honor a claim.

Of course it might be an attorney that needs to convince the insurance company it was the septic company's fault.