Liable? (urgent)

[gjn]

We sold a house last year and soon there after the buyers claim they had water dripping in there laundry room from a leaky drain pipe, and through further investigation on there part found water damage behind a wall resulting in repair costs of about 3,500.00. We have a arbitration clause in our contract.

My question in a nut shell is what is the point of liablity? If it was a long term preexisting condition are we imediately liable or, do they have to prove that we were aware of this condition, which we were not and we feel have a pretty strong case in our faver showing that

 

[David J. Miller]

It is my understanding that you would not necessarily need to be aware of these problems. Under the law you are required to mitigate potential losses from these sorts of claims by taking the necessary steps to ensure they are not present. To be sure, please check back for a response from Homeguru or one of the other attorney's on this site.

 

[HomeGuru]

If you did not know, or could not have know of the problem, then you are not liable.