You just bought a house, and a few weeks or months in it, you discover it has septic tank issues, none of which your seller mentioned when handing it over.
Where do you start, or what options do you have?
Maintaining, repairing, or replacing septic tanks can come with significant costs, making it a potential financial strain if you hadn’t expected to address these issues in the near future.
The septic tank is a crucial area to focus on when buying a house or property.
It is critical to conduct an in-depth inspection to ensure it is in perfect condition, even if the seller’s clause already stipulates it is in good condition.
Some sellers may lie about a septic’s situation to avoid incurring repair or replacement expenses.
However, things happen, and in one way or another, you may find yourself dealing with a faulty septic tank that could leak, consisting of aged components, leach field issues, or blocked inlets and outlets.
When faced with such a challenge, you can explore the following options depending on the real estate laws applicable in your locality or state:
1. Review the Sale and Disclosure Documents
When faced with a septic tank issue after buying a property, revisit the sale and disclosure documents to determine if the seller has violated the agreements by not disclosing the underlying tank defects.
Once you ascertain that the seller breached the contract, you can explore out-of-court options such as negotiations, and if they don’t bear any fruits, consider taking legal action.
2. Discontinue the Purchase
If the sale agreement has yet to mature, you can cancel the purchase because the seller failed to come clean on septic tank issues.
Most real estate laws dictate that sellers disclose the truthful state of their listed properties so buyers can make informed purchase choices.
Also, reputable real estate agents issue a disclosure statement outlining all possible defects within the house so that a potential buyer is aware in advance of the current state of the property.
Hiding details regarding the septic tank to the buyer can warrant a purchase cancellation, especially if the sale money was placed in escrow or the purchase was in the negotiation phase.
If you haven’t signed the sale contract, you have every right to call off the purchase and get back to house hunting until you find a transparent seller.
If the seller proves beyond doubt that they weren’t aware of the faulty septic tank, you can give them a repair or replacement grace period to fix the damage.
3. Reach an Agreement
Settling the septic tank issue amicably with the seller may be suitable if you have already acquired the house.
It is a workable solution for disclosure disputes if the seller cooperates.
You can contact the seller and request compensation for repairs or replacements.
The seller should commit to settling all your expenses in rehabilitating the septic tank.
To avoid back and forth in cost settlements, you can choose the escrow option, where the seller’s money will automatically be transferred into your account after repairs or new installations have been completed.
The buyer-seller agreement satisfies all parties without dealing with lengthy and costly legal processes.
4. Consider Mediation
You may fail to reach a mutual agreement with the seller, prompting you to find a neutral mediator to help you resolve the issue.
Involving a neutral third party is also critical in ensuring that promises will be honored without delay, rendering all parties satisfied.
5. Sue the Seller
If the above options do not work, consider suing the seller.
Some sellers are adamant or not responsive in meeting damage costs of property defects they were very much aware of, prompting buyers to seek legal help.
If you find yourself in this situation, do not hesitate to sue your seller if you have proof that they were aware of the damaged septic tank but aren’t willing to take the renovation responsibility.
Find out about your local or state real estate laws, or consult an attorney for guidance on approaching the issue legally.
If you must hire an attorney, seek those who specialize in real estate or property law and have a history of winning client cases.
They will help you understand your rights as a buyer and tell you if you can sue the seller given the time stipulated in the contract’s disclosure disputes.
Attorneys will also gather enough evidence by photographing and consulting a certified septic tank inspector for professional-backed evidence.
Sellers found guilty of selling defective properties are directed by law to pay or compensate the buyer for all the costs incurred in remedying the damages.
Depending on the terms of the sale documentation, the seller may also be directed by the court to refund your attorney fees.
Timeframe for Taking Action against a Seller Who Failed to Disclose Septic Tank Problems
Is there a specific timeframe within which you can take action if the seller didn’t disclose septic tank problems?
How many days, weeks, or months have gone by between the time you closed the house purchase and discovered the septic tank issue?
Most real estate agents provide disclosure forms detailing the timeframe within which a buyer, upon signing, can raise defects concerns after purchasing a property for them to take action.
If you raise the septic issue within the timeframe, the seller with be eligible to bear the responsibility of fixing the tank, but if you bring up the concern past the timeframe, the seller will not be in a position to cater for the damages, whether he was aware of the defects or not.
However, you can avoid the hassle of dealing with septic tank issues by conducting due diligence before purchasing a house.
Even if a seller doesn’t provide a disclosure dispute form, you can take legal action against them if you have proof that they lied about their property is in perfect condition.
You may also want to check: Who Pays for Septic Inspection: Buyer or Seller?