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Need some thoughts. We are about to purchase a home in which it was just disclosed that the septic was not finaled. We are out of our inspection period and we need to sign off on the property disclosure tomorrow the 21st. Originally, our agent advised they could not find any information regarding the septic system or a cesspool through the health department. We received the property disclosure days ago, but the listing agent just sent the septic information yesterday. The question is: it seems for the septic system to be finaled out now, we would need to have it excavated along with the drainfield for the inspector to review? This seems extensive and rather a problem and perhaps pricey?
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Was a permit ever issued to install the septic in the first place?
At any event, to me, this would be a "walk away scenario." Or at a minimum, you stipulate that all costs required to inspect, repair and bring to code be borne by the seller.
YOUR Agent should be guiding you on your next step(s) as well.
Good luck!
“I could say the stupidest things and you’d clap”
-DJT
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Have you personally inspected the home, or viewed photos, to see if the septic system has been backfilled already?
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I'm pretty sure that if the seller didn't disclose that the home has no septic system or an unpermitted one, you can walk away.
At this point if they installed an unpermitted system they are legally required to correct that.
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To disclose something like this two days before closing raises a huge red flag. When your agent said they could find no info on the septic, did they investigate further? If not, that's a problem. What did your home inspector have to say about the septic? Like everyone upstream says, it might be a walk away situation. An alternative would be to delay the closing unil the system is finaled.
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A competent Realtor should be able to answer all these questions for you and offer options on how to proceed. This is what you're paying them for.
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When was the Building Permitted? if it was completed before the Law Changed then the Septic System/Cesspool is grandfathered.
But still check the requirements at
https://health.hawaii.gov/wastewater/hom...o-and-faq/
from the site
As a home buyer, what should I be careful of when purchasing a property?
When purchasing a property please be aware that if the wastewater system on the property is not in compliance with our rules, as the new homeowner, you will be held accountable for bringing the system into compliance along with any costs that it may entail.
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It's been a while since I have purchased a house, but there should be a clause in the contract regarding the owners disclosure and specifically addressing any failure of the owner to disclose a known material fact, and what your remedies for that are.
You no doubt have an "out" so you could bolt as has been suggested. If there is a mortgage involved, it is unlikely that a loan will fund until the issue is resolved so that is another sort of "out".
Assuming that you really really want the house, you could remind any agent involved that this problem makes the property much less appealing in the marketplace and then begin to renegotiate.
If there is a mortgage involved then they need to resolve the issues on their dime and compensate you, via price reductions, repair allowance, or otherwise, for the damage caused by the delay, uncertainty, their failure to report the issue, etc. This will no doubt push back your closing date and cause some problems that only money can fix.
If there is no mortgage involved, and you are comfortable with closing on the property and then resolving the septic issues yourself, then you could renegotiate a purchase at a lower price. Just be sure to not end up "holding the bag". Dropping the price by double the cost of a new septic system (installed, connected, and approved) might be a reasonable place to end up.
As has been mentioned by other posters, your agent should be giving you good support on how to navigate this. If not, ask for a sit down with their broker to review the situation and the available options.
"If we are too precise we will be called out because we cannot back it with data."- A.F.
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We ultimately found out the septic was 60% complete from the Dept. Of Health. No one knows why or how, but the original owner/ permitter stopped the process at some point and started using the system, as did the next owner after them. Our agent has been beyond helpful and involved. We did request a credit at closing, which was outright refused by the seller. So, we walked. I appreciate everyone's advice.
