Legal Question in Real Estate Law in California

If it is considered an attractive nuisance then you can be held liable. Even if you warn the negligent parents. In a lawsuit, speaking with the parents could comparatively lessen your liability; however, if the flaglot is considered an "attractive nuisance" by a court of Law, then you are still somewhat liable. Fair? No.

The term "attractive nuisance" needs defining. In liability law, something is an attractive nuisance if it draws the attention and interest of potential trespassers (that's the "attractive" part of it) and if it is potentially hazardous to them (that's the "nuisance" part). An early case in which the term attractive nuisance was used by the judge involved a railroad turntable that attracted neighborhood kids to play on, and it was recognized as a "nuisance" for lawsuit purposes when one of the kids got hurt and the parents sued the railroad.

If there is nothing particularly hazardous to children about your lot -- nothing that would be a safety concern upon a careful inspection by a conscientious neighbor -- your risk is probably quite low. Although the lot might be somewhat "attractive" (not in the sense of "pretty," but rather in the sense of drawing attention), it probably isn't a "nuisance" (meaning dangerous).

Your best recourse here is probably to carry insurance that protects you against damages and costs of suit, and I recommend that you discuss the situation with your insurance agent.

I agree with Mr. Whipple, but I would also add that a good fence might help. Attractive nuisances can stem from anything from a large gravel pile (king of the mountain) to a swimming pool or pond, to a grassy area that is great for playing ball.