If You Have a Septic System

August 16, 2007

In our market area, many homes are still on Septic systems. Some of the older ones are just pits or leach lines, but most consist of a large tank and one or more seepage pits or leach lines.

I had a question this week about whether a seller had to have an inspection and certification of the septic system when a property was sold. My answer, like so many answers in life, was "It depends."

The state of California and ,I believe, most municipalities do not require that the septic system be inspected and certified. However, the C.A.R. Purchase Agreement that is used by agents to write most offers on property does have a clause which references "Other Inspections and Reports." Item, (1) states "Buyer or Seller (Check the appropriate box) shall pay to have septic or private sewage disposal systems inspected." Most buyers' agents will check that it is the sellers obligation and many will add "certified and pumped, if necessary." Common practice generally believes that a seller should deliver the property to a buyer with a properly functioning septic/waste disposal system. The buyer's lender will also require the system to be inspected. (I did check with a loan officer and the lender may not require it if the buyer and seller did not make an inspection part of their purchase agreement. This is also true for pest control inspections.) The reality is that whether an nspection is required and who will pay is one of many negotiable items in a real estate purchase agreement.