All About Septic Systems – Part 4 of 6

What Happens Next if My Septic Inspection Reveals Problems?

First, congratulate yourself on opting for an inspection. You may have just saved yourself from a big mistake! Septic Inspections are not required for buyers in Virginia, but buyers bear all of the risk once the transaction is closed, so there is no recourse for problems that weren’t discovered during the inspection time allotted.

If a problem is discovered, you, the sellers, your agent and the seller’s agent work together to negotiate a solution. Because the most commonly used contract in central Virginia requires septic systems to be certified as being in working order (and most lenders do, too), problems need to either be solved before closing, or a plan needs to be put in place to allow a solution after closing. Depending on factors such as how severe the problem is, whether or not permitting is required, whether or not special equipment is needed, and the time of year, septic repairs can cause a significant delay in closing on your purchase, so it is a good idea to get a septic inspection done as early as possible in the inspection window.

For problems that can be solved before closing, it is up to the sellers to coordinate the repair work needed. Once the work is done, the certification required by the contract is then sent to the closing company.

For more complicated work, or work that will take longer, buyers and sellers can sometimes opt to escrow money from the proceeds of the sale to be held by the closing company until repairs are made. Often a guess needs to be made about how much a problem with cost to fix, so guessing high is always a good idea. Once the work is done, the contractor is paid from the escrowed funds and any monies that are not used go back to the seller. It is important to note that any such agreement must be acceptable to your lender! These agreements are common, and usually have a specific time frame in which the work must be completed. If, as the buyer, you agree to have work done after closing, you must get this work done within that time. Otherwise, none of the money set-aside can be used for the work, and all the monies go back to the seller.

Often the company that did the inspection and revealed the problem will be tasked to also do any repair work. But some sellers may want to chose a different company. If possible, ask your buyer agent about the company that the sellers are choosing to be sure they are reputable, and what kind of guarantee for materials and workmanship is offered.

Read all the posts in this series –
1. What is a Septic System?
2. Getting a Septic System Inspected
3. Common Septic Issues and Problems
4. What Happens if a Problem is Found at the Septic Inspection?
5. The Difference between a Buyer’s Septic Inspection and a Seller’s Septic Inspection
6. Maintaining a Septic System

You can also download the EPA Homeowner’s Guide to Septic Systems for more general information, including helpful illustrations of septic systems.