Being Sued For Non-disclosure After "as Is" Sale >1 Year Ago.
I sold a rental property over one year ago "as is". The property was rented for 2 years before the sale. The buyer was notified of this. The contractor the buyer paid for found water intrution and a musty smell which the mold addendum states could be mold. The house was sold at @ $80,000 below market value at that time. The house is now worth another $100,000 more. Does this make sense? Any input? 
I think the answer is it depends on what you knew and what you disclosed to the buyer about these conditions. In PA, it's irrelevant if a sale is "as is" where the property owner knows material facts and doesn't disclose them.
Don't mean to be glib, but if it's appreciated that much, why not just offer the buyer his money back and get your house back? He can't have his cake and eat it too. If you allow sufficient time for the reclosing (unclosing?) you might be able to flip it and turn a nice profit before you have to come up with a dime.
I'm with Loon on this one.
In fact I'd make the proposal infront of the judge. If the other guy balks I'd characterize the situation as a shakedown and petition for my legal fees.
If you're being sued, the ONLY advice you'd better listen to is your lawyer's, unless you're trying to second-guess him/her and want to really get him/her alienated quickly..