Expert: Karyn Foley - 9/22/2007

Question
Hi Karyn,
My sister sold her mountain home in Colorado last July.  She just received an email from her realtor stating that the buyer's agent had contacted him.  They think the well is dry.  My sister owned the house for ten years, never had a problem with the well itself.  She did have the pump replaced last November.  All was fine after that.  The well was tested and proved fine as part of the selling process.  Does she bear any responsibility for this?
Thank You, Wayne Rader

Answer
Dear Wayne:  This can be uncomfortable and confusing.  It is a "gray area".  This problem did happen very soon after the closing, and the buyer seems to have a valid concern.  Is there any documentation from the buyer from the person or company who tested the well and said it was dry?  Do you have any documentation from when and from whom the well was tested a couple of months ago?  I am not familiar with well and responsibilities, but I think that a neutral specialist should go over and test the well.  You should choose some one who could give all parties a determination of the well being dry or not; if it is dry, then the specialist should say why it is dry so soon after the close of the transaction.  I know it has been a fairly dry season, but how dry has your area in Colorado been?  It is just heading towards Winter now, when water should be more ample.  Did your sister ever have the well run dry; if so, when and why?  This could be a costly situation if the problem is not addressed and settled soon.  Perhaps the pump is broken; if that is a possibility from your point of view, have the person who replaced the pump last November go to the property and check out the pump. If the pump in indeed new and is broken again, there should be some sort of guarantee on parts the first year after repair.  Try to come to some resolution with the buyer.  If it is a matter of money, and the amount is not large, the seller should consider taking care of it (at least splitting the cost with the buyer if the buyer is agreeable) and having the buyer sign off on that item.  Your sister's agent should step in and help resolve the issue along with the buyer's agent.  I hope everyone is cooperative and not stubborn.  Also, check to see what the disclosure regulations and forms are required in the city and county where the property is located.  Everyone should have signed that item that refers to systems, appliances, and items such as wells.  There is always something like seller responsibility and accountability for an item that malfunctions after so short a time.  There is always something as well for a first time malfunction.  Getting together on a solution sure beats going to small claims court of being hit with a law suit.  Some states have mediation clauses in them.  That could cost some bucks too, along with arbitration.  The spirit of cooperation among all parties works best and usually is the least expensive way to go in the long run.  Let me know what happens and what direction you are taking.  If it appears that the issue will only grow larger, then your sister should take a moment and consult a real estate attorney who can advise her and be an advocate.  Good luck.  It seems to always happen that something goes amiss soon after the close of a transaction.  Karyn Foley