Question: We sold our house in August. The buyers bought it "as is" and didn't get a home inspection, although we did. Now, they claim that the backyard heavily puddles and doesn't have proper drainage. When we owned it, we noticed some small puddles during very heavy rains, but none that we considered significant. Hence, we didn't check off drainage problems on the disclosure form. Our home-inspection report noted that the backyard didn't have proper drainage. The new owners got a $15,000 bid for installing proper drainage and want us to pay for it. What are our legal responsibilities?

Answer: Your responsibilities are unclear at this point, I'm sorry to report.

June Barlow, general counsel of the California Association of Realtors, says people frequently misunderstand what it means to sell a house on an "as is" basis. That contractual term doesn't release the seller from his obligation to disclose all known material defects. It just means that the seller won't fix the problems.

In your case, there are two questions to consider. The first is whether this drainage problem is really material. That may be a matter of opinion; one man's puddle is another man's swamp. A court ruling may hinge on whether the buyer can produce evidence that the problem is serious and must be repaired.

If the problem is deemed material, the second question is whether you adequately disclosed it. If you provided the buyer with a copy of the home-inspection report mentioning the drainage problem, Ms. Barlow says, that may well be good enough. It would have been better, though, to have noted the drainage situation on the disclosure form. Ms. Barlow says it's best to err on the side of disclosing too much, even things you consider trifles, rather than too little. Let the prospective buyer decide whether any defect you mention is material. In thinking about what you need to disclose about your property, she suggests, ask yourself what your next-door neighbor is likely to tell the buyers once they move in.

Sound advice for those who want to avoid muddles over puddles.

-- Mr. Hagerty is a staff reporter for The Wall Street Journal. His "House Talk" column appears most Fridays on RealEstateJournal.com. E-mail him your questions about the residential real-estate market. Please include your first name and city and state. If your question is answered and posted, we will show your first name and city. Due to volume of mail received, we regret that we cannot answer every question.

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