post closing basement water damage

[Archie]

help in virginia. three weeks after we sold our townhouse, the buyer discovered some water damage behind a basement wall when he removed the paneling to build some bookshelves. he had no home inspection done, no complaints at walk through and no complaints at settlement, although i think he was suffering from buyers remorse. the buyer is now accusing us of fraud and failure to disclose and wants us to pay for the damage. i had no knowledge of this damage, i lived in the house for three years and never once did i see water. i don't have x-ray vision. this room was our family room. he is threatening lawsuit both to us and the real estate company. i don't know how much damage there is. am i liable? what is the home warranty for? what about buyer beware and as is?

 

[HomeGuru]

help in virginia. three weeks after we sold our townhouse, the buyer discovered some water damage behind a basement wall when he removed the paneling to build some bookshelves. he had no home inspection done, no complaints at walk through and no complaints at settlement, although i think he was suffering from buyers remorse. the buyer is now accusing us of fraud and failure to disclose and wants us to pay for the damage. i had no knowledge of this damage, i lived in the house for three years and never once did i see water. i don't have x-ray vision. this room was our family room. he is threatening lawsuit both to us and the real estate company. i don't know how much damage there is. am i liable? what is the home warranty for? what about buyer beware and as is?

My response: a home inspector does not have X-ray vision either so even if a home inspection was done, it would not have revealed the problem. You probably are not liable.
The home warranty does not cover basenment leaks.
Buyer beware and as-is may help you in this case.