Sorry I wanted to add that the fireplace was in working order at time of closing and still is (in case that wasn't clear).

What does your agent say?

It seems to me they don't have a case.

People threaten all sorts of things- I would wait until I actually see a problem before I panic.

They don't even almost have a case. All home sales are "as is." The only caveat to that is that you must disclose any material defect that you are aware of.

I am not even sure that a fireplace that was not grounded is material even if you knew about it. In this case material would be defined as something that would prevent a reasonable person from buying the house. It might be material if it is a genuine safety concern but I doubt it even then.

If it were me, I would play hard ball right back. I would give written notice to my agent to cease communications with the buyers and ask that future communications be forwarded to you.

You just send an email with a read receipt to the agent that says something, "As we have we been notified of pending legal action, please refrain from further oral communications with the buyers. We ask that any email or written communication regarding this matter be forwarded to us, so that we may properly inform our attorney."

The buyers are just saber rattling. They are upset, and being petty people want you to be upset also. The best way to fix it is to deny them the opportunity to easily reach you.

I had a realtor once suggest, because I was moving out of state immediately after closing, I place $200 in escrow for the purpose of paying for anything that might crop up. Sure enough, we managed to scratch up the vinyl floor in the kitchen when we removed the refrigerator. The new buyer complained and I said give them the $200 with my compliments. My realtor took care of it and I never heard from them again.

I assume from the poster's description the fireplace must have some sort of electrical connection, maybe a starter. Call an electrician. The inspector should have noted the issue. Maybe the buyer's should talk to their inspector. After all, he's the expert.

These buyers had their opportunity to inspect to their hearts content. They allowed the inspection period to pass without a request of remediation and proceeded to sale. They have no grounds to sue. Tell your realtor to tell their realtor to tell them to pound sand.

Your buyers are being ridiculous. They had an inspection and the inspector found what he found. You are not now responsible after the sale for bringing it up to current code, if it was to code when built.

You did not conceal a defect. They have no grounds to sue you.

They should call an electrician and have a grounding wire put on the pipe. Not a big deal. I'd be surprised if it were a couple of hundred dollars.

These sorts of entitled buyers are everywhere.

It's called bullying. Say no.

Once they sign the papers at closing, they own the house, warts and all.

Grounding the gas pipe is an easy task ... way cheaper than getting a lawyer and suing.

They sound like a near-fatal case of buyer's remorse has set in.