wow... I would suggest the seller consult with an attorney.

In my "non-lawyer" opinion... it seems that the buyer's/side is responsible for returning the property to it's former condition.  The fact that the buyer's agent didn't do their due diligence and know that they have 2 outstanding insurance claims, would make them vulnerable to a lawsuit.

If the plumber doesn't have insurance... I'm sure the buyer's agent's agency does.

________________

Personally, I would have offered a $2,000 credit toward the repair, and the buyer would have done the work, and used whomever they liked, after they took possession ... and now this would be their problem.

In a transaction right now. The buyer found a plumbing issue. My seller evaluated it and got an estimate from a licensed plumber for $2,000. Seller and buyer both agreed to credit rather than repair. 

Mimi, I believe the buyer/buyer's agent needs legal advice.

Oh, such a sad situation, Mimi! I would have simply had the seller contribute the $2K at Closing and allow the buyer to correct the defect AFTER Closing. 

Now that the deal is done, as the agent, I would seek counsel from my corporate attorney and the E&O representative.

I suppose the owners should contact their Homeowners insurance for coverage to repair ASAP. Would their insurance company then sue the Plumbing Company to recover costs? If he is licensed and bonded, the bond might cover the costs.

Consult with my attorney for guidance.

One misstep without legal counsel could create another flood of a different variety. 

What attorneys see in my market is too many agents pointing fingers and trying to resolve issues without fully understanding the ramifications of their actions.  

So the licensed plumber who was hired sent his unlicensed worker in his place to make the repair. And it's still not repaired because the unlicensed plumber screwed the job up and the licensed plumber cannot afford to fix the damage?

WOW. What a terrible situation.

I agree with Kathleen Daniels, Probate & Trust Specialist and would get legal advice. My gut says that plumber will be responsible for all the repairs whether he has money or not... but my gut doesn't know law.

A sad situation. Agents need to be careful with their recommendation. First, check to see if insurance covers the damage. The home owner will have to decide what to do about any legal claims.

How sad all around!  I'm thinking a lien on plumber will be required but BA and Brokerage needs to be ready to be sued too.  Realtors always get invited to the big court party. 

1st call would be to real estate attorney and get advice as BA. Follow advice. Clearly for the LA, as you said hindsight is 20/20, and no doubt would have handled it differently.

This is just another good reason when someone ask for repairs, that I suggest to my Sellers - just give them a discount and let them get the repairs done after the closing!!! 

PS - It's never failed...

Would have done my best to use who the seller would want to use. I would have had the buyer sign off for repairs & damages for this guy. It's actually hindsight now.

There's $7,000 that's unaccounted for so they'll try to go after the agents. 

Hire and attorney to sue the plumber is about the only recourse I can see that works and the whole blood/turnip thing.

Any tradesman can fail whatever reason and how are we supposed to know that? The some of the answer for now is perhaps a negotiated "happy" place for all involved. On hindsight, (and foresight if you use my example), I like just giving the people an amount to put toward the repairs with some wording that says: Payment in full for any and all claims, known or unknown, now or in the future regarding subject property.  Then, they can do repairs whenever they want and to their satisfaction. 

Attorney
Homeowner's insurance co.

OH I SEE insurance is only covering 5k? Why?

Start with attorney though.

What a freakin cluster!

I'll start with the usual disclaimer: I'm not a lawyer, nor do I play one on TV.  You should consult with a competent real estate attorney who is familiar with the laws of your state.

Now with that said, I would call the buyer's agent's Broker and have a talk with them.  The plumber should be responsible, but since they are flaking this is now the responsibility of the Broker since their agent recommended the plumber and personally vouched for them.

Yes, this is why credits are better than repairs.  Yes, this is why we give a listing of several providers and don't recommend one over the other.

Our contracts state that a licensed professional must do any repair work, for good reason!  The plumber should have had a licensed professional take on the job or done it himself. He is open to being responsible for the entire cost, of course, consulting with an attorney is best. A credit at closing would have been beneficial for all parties, Mimi. 

Interesting story, the devil in the details.  Anything here in writing about who the plumber was actually working for?   Seller contracted for the plumber to do the work.  So.  But hang on.

 It would appear that the Buyer and Buyer's Agent are responsible.  If they don't want to pay up, then Legal Counsel is in order.  And have that lawyer go after the Buyer and the Buyer's Agent, not the incompetent Plumber.

  Also, I didn't see in your story, "Did it close yet?"

Sounds like an attorney should be contacted.  This does not sound good.

Alan May just saved me a lot of time writing a response. His is perfect and it's what I would have advised, as well.

Issue credit at closing then have the buyer use whoever they want and make it their problem.  

The buyers need to sue the sellers for the balance. You compile all your emails and documents proving your version of the story and be ready to help them in that way. There's really nothing more for you to do as this will either be a small claims court case or they'll hire a lawyer if it exceeds $10,000.00. The agents role is providing documentation help and moral support.

Seller should have done his homework before allowing a tradesperson to fix anything in his home. As experienced real estate professional, listing agent should have advised seller client to look closer at qualifications, or to recommend three different specialists based on personal experience.  After all, sometimes you "get what you paid for".  A good agent acts as a wise consultant to the client.

Seek counsel from an attorney. Surprised the plumber would send an unlicensed person to do the repair and didn't come by to inspect the work.

Are your plumbers not required to have liability insurance in Colorado?

The advice of Alan May is spot-on IMO.

Also, file a complaint with the contractor's licensing board in your state. This contractor should loose his license.

Oh wow! What a mess. I would consult an attorney. I'm thinking the buyer's agent will cover this. I hate that for them. I once recommended a repair person I had used many times including in my own home. He sent in newly hired employees who didn't do repairs correctly. I think the contractor got busy and hired them out of desperation. I had to be at the house the entire time they were doing repairs and didn't know he was sending subs until they got there. It took hours for them to do simple punch list repairs. The things they had to repair were simple things and they were reading directions. I was furious about the amount of time they took from my day. The seller called me very upset because they did a terrible job. She called someone else to fix their work and refused to pay the original contractor. I don't blame here. I let the contractor know. He said he'd come make the repairs but the bill had to be paid or he'd put a mechanical lien against the house. She refused to let them come back.

Guess who paid the bill? I did. Guess who never got another job or referral from me? The contractor. Thankfully, the seller didn't hold it against me and has referred business to me since.

Having learned from me experience, I do things differently.

Going forward, I would check out the license and insurance first.

Wow.  This requires a lot of thought.  Good to know about these things to avoid them in the future!  Buyer and seller need to agree to a monetary solution and put it in writing in order to close.

Completely out of the box thought....can the sales price be increased to cover the damage caused?  After all, it was the buyer's side that wanted the particular contractor.

Reason #1 why none of us should ever use the word "MY" in front of anything.  We get associated with the result of their failures, and everyone has them in their careers.  

Sounds like this occurred after the close of escrow.  This would be something to be dealt with between the buyer and seller.  We as agents need to get legal advice to protect ourselves.  Consult your broker and an Attorney to make sure you don't get sued or end up in court.  The listing agent did what most of us do and that is presume things will be done correctly.  We need to back up our mistakes.

Hi Mimi...I hope all is well in your neck of the woods. Rolled through Colorado Springs last week but did not have time to contact anyone. 

I am not sure what to do...glad it was not you...I read all the comments here too...some make sense...some never do!!   

Look forward to hearing the final resolution.