Posted this on another forum, though I would post here also…
Im not gonna go in depth, but I am being sued as we speak.
My Lawyer says I should just settle with them, and split the cost with the Realtor. They are looking to settle for replacement of the sewer line, and flood damages in excess of $30,000.
We(the Realtor, and I) may be @ fault because we did not suggest they have the sewer line inspected. Nor did we inform them that Sewer Camera Inspections existed. I have a disclaimer about pipes in walls ,and below ground, but apparently its garbage because I did not educate the customer about Sewer Inspections.
Make sure you recommend(verbally, and in writing), and highlight it on every single job you do.
If I live through this ordeal I will never let this happen again.
My Lawyer is writing something up to the effect that lists all specialized inspections(chimney, sewer, geo, etc.) available to the customer. It will state that I “John Hancock” have informed “Joe Blow” about specialized inspections available, and recommend these inspections to the “Joe Blow” to further educate them about existing conditions that may be beyond my scope of work. All specialized inspections should be perform before close of escrow. They will have to sign, and date it.
Cover your butt!