Most country homes rely on septic systems to store and handle human waste. They are not hooked up to a ciy's municipal sewer system. Many people don't realize this when buying a country home or ranch, as septic systems are located underground. Here are two stories about the importance of requesting a septic insection during escrow.
Story 1
I have a dear friend who recently sold his country home. (I was not part of the transaction). After escrow closed my friend told me he was being sued by the buyer of his home for failing to disclose that the property had a septic system and for the installation of a new system. Niether his agent nor the buyer's agent ordered a septic inspection during escrow. The buyer also did not ask for a septic inspection on their purchase offer contract, and removed all contingenices without seeing a report. Understandably, both seller and buyer relied on their agents to help complete the disclosure paperwork and order all necessary inpsections.
My friend claimed that during escrow he pointed out where the septic system was located to the buyer. He also informed the buyer that he would periodically drop some cleaning agents down the toilet to improve the system. But septic systems are one of those things that are "out of sight, out of mind." You really don't know what's going on down there unless you have a professional pump the system and open the lids to view inside.
It was not until the escrow officer asked for the septic report the day before escrow was to close that both buyer and seller agents realized their mistake. A rush was put on an inspection for the same day. While the toilets worked fine, the septic system had been compromised by several large trees and their roots. The septic professional said the system would have to be replaced and also put in a different and more expensive location where the trees would not interfere.
Normally, a seller is asked to ensure the septic system is in good working order. Along with any termite work, the septic system is a big ticket item that can cost a seller dearly if the system has not been property maintained. Unfortunately, my friend had already negotiated the sale of his home at a certain price. Had he known that a new septic inspection could cost him thousands of dollars, he may have negotiated the sale of his home differently.
It is not clear how this case will be resolved. What is clear is that both buyer and seller agents made serious mistakes.
Story 2
This is a story of a purchase where I represented the buyer. My client was a city dweller who was excited about buying his first country home. The home was built in the 1950's and had approximately eight acres of avocados. Only two families had owned this property since it was built.
The owner kept the home and grounds in immaculate condition. She claimed that the septic sytem was in fine working order and she had not had any backup problems. She did not see the need for a septic inspection, mostly because she was worried about her grass being dug up.
I took the homeowner as an honest person but still requested the inspection for my client. The septic professional found the system was completely backed up. It also turned out to be an out-of-date leach pit lined with brick and mortar. The system had to be collapsed and filled with sand. A new system was installed at a cost of over $12,000. Had we not requested the septic inspection, there is a good chance escrow would have closed and my client would have been stuck with an out-of-date system in need of immediate replacement.
Final Note
If you are looking at purchasing a home in the country be sure to read all reports clearly to see if the property has a private septic system or is hooked to the municipal sewer system. The septic inspection is one of the more important inspections you should always request.
