VA Sale With Septic System Being Replaced

[gregb]

Inspected a VA sale today, where the listing agent reported that the seller is going to replace the septic system. According to the listing agent, the current septic system is near the end of its useful life, though still working. As a relative VA newbie first facing this particular issuse, would you experienced VA appraisers make the appraisal subject to completion of the new septic system? If so, would it be due to the subject not meeting VA minimum safe, sound or sanitary requirements?

 

[CindyR]

Is it specified in the contract? then I would make the appraisal subject to its completion per the contract.

 

[gregb]

No mention in the contract. Home inspection report raised the issue, which has not been provided to moi.

 

[Terrel L. Shields]

There is no reason to "replace" a septic system if it isn't physically damaged. The tank can be pumped if it has sludged up. And if it is surfacing, that is usually a leachfield issue. That could be replaced, etc. without doing an entire replacement. If maintained, there is no reason a septic system cannot work for decades. My parents old house has a system installed in 1955 and never replaced and pumped maybe once.

 

[Deleted member 128537]

Lots of systems are still "working" but need replacing. By the time a septic fails it's often to late to replace and you have the sewer backing up into the house, etc. So I would be careful to ignore a statement that it is "near the end of it's useful life." That could be code for "it needs replacing." Sounds like realtor speak to me. It's like saying, "Go ahead and appraise it "as is" so we can get the deal done." You also need to take local data into affect. For example in my county metal septic tanks are now considered non-conforming and need to be replaced even though working. Also I can't believe the seller is replacing the system without it being part of the contract. If the sale price of the home is taking into consideration the system is being replaced then it should be part of the contract and the appraisal should be "subject to." Also if there was a septic inspection I would want that report to see exactly what it says. And if it isn't part of the contract then I would make an adjustment for a septic system that is near the end of it's economic life on an "as is" report. That might cause the appraised value to be below the purchase price.

 

[Peter LeQuire]

Is there a health department in the jurisdiction that would have a permit on file; would it inspect to see if the system is operating? I'm not aware of any sale of house in this area, on septic, in which a health department inspection of the septic system wan not required.

 

[coolhandluke]

VA guidelines require septic testing in many (most?) states. Did you personally observe any evidence of a failing system? If not why would you condition YOUR report on realtor hearsay?

 

[Meandering]

We had the drain field dug up and re-tiled when we bough the house. Apparently decades of someone dumping grease and oil down the drains clogs the drain fields, which then can't breath (in ground system) But the tank, mainline and baffle have been in the ground over 60 years with nothing wrong with them.

 

[1963Clipper]

Contractual obligations don't always equate to VA minimum property requirement-related repairs, and if you didn't personally observe a problem with the septic, there's no need to you to be calling for a new one as a repair item.

 

[GWISC]

Contractual obligations don't always equate to VA minimum property requirement-related repairs, and if you didn't personally observe a problem with the septic, there's no need to you to be calling for a new one as a repair item.

Due diligence is required. If you have information on the septic (informal or not). It is your duty to follow up and get a report from the building inspector county official or whomever can specifically document the condition of the septic. You can't get info of a failing septic and just ignore it. I have talked with our VA regional loan center in our area. They have consistently indicated they want the septic remedied or replaced. Yes, it is a sanitary issue. My advice is to also call your Regional Loan Center and ask them. That is what they are there for.