Real estate exposure
A letter, a phone call, a process server at the door — however it arrives, being contacted about work from years ago is unsettling. What happens in the first few days matters. Here’s what to do, what to avoid, and when to bring in an attorney.
1. Preserve everything. Contracts, change orders, permits, inspection records, photos, invoices, emails and texts with the property owner at the time — gather and preserve all of it. Don’t wait to be asked. Records that establish what was actually done, when, and under what scope of work are often the single most valuable thing a contractor has in this situation.
2. Notify your insurance carrier. If you carry errors and omissions (E&O) or general liability coverage, notify the carrier promptly — most policies have notice deadlines, and late notice can jeopardize coverage regardless of how the underlying claim turns out.
3. Write down what you remember, privately. While details are fresh, note dates, scope of work, who you dealt with, and anything else relevant — for your own file and your eventual attorney, not for sharing with the other side.
4. Get the communication in writing if it wasn’t already. If you were contacted by phone, a short follow-up email confirming you received the message and are looking into it is generally reasonable. It is not the place to explain, justify, or apologize for anything.
California generally applies a three-year statute of limitations to fraud claims, with a delayed-discovery rule, under Code of Civil Procedure §338(d) — meaning the clock can start running from when the problem was discovered, not necessarily from when the work was performed. Separately, Code of Civil Procedure §337.15 sets a 10-year absolute outer limit for latent construction defect claims, regardless of discovery. Exactly how these timelines apply to a specific situation depends on facts this page can’t evaluate — but the general point holds: how promptly you act, and how you document that timeline, can matter to how the situation unfolds.
Being contacted doesn’t necessarily mean a lawsuit is coming, and it doesn’t mean anything is ultimately owed. But once a demand letter, formal notice, or legal process is involved, the guidance above is a starting point, not a substitute for advice specific to the facts. An attorney can review what’s actually being alleged, what the records show, and what response — if any — makes sense before anything is put in writing to the other side.
Before you ask
There’s usually no legal requirement to respond immediately to an informal phone call or letter, but ignoring it isn’t a strategy either. A brief, careful acknowledgment that you’re looking into the matter is generally reasonable while you gather records and consider next steps.
Generally, no. Even a well-intentioned explanation can be read later as an admission or used to fill in gaps in the other side’s case. It’s usually better to preserve records and consult an attorney before providing a detailed account.
Gather what you do have — even partial records, old emails, or photos help. Permit records are often available from the local building department even years later. What matters most is being thorough and accurate about what actually exists, not reconstructing gaps.
Talk to an Attorney Today if you’ve been contacted about work you performed on a property that has since been sold — the sooner in the process, the more options are usually available.