Real Estate Law
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Generally, a seller is only liable for failing to disclose things he/she knew or should have known. Thus, if you didn't know the sewer line was collapsed and you shouldn't have known (meaning there were no signs of a line collapse), the buyer would have a very difficult time holding you responsible for the damages and forcing you to pay for the repairs.
That doesn't mean the buyers won't sue if you don't work something out, but their claim would be difficult to sustain unless there is proof that you had knowledge of the issue.
Also, if the buyer didn't have an inspection done, then it's likely that there's some responsibility on him/her for not taking due care to inspect the house before buying it.