As well, It has a 2nd Septic system on the property, that I was not aware of. It runs to a mobile home also on the property that is being seen as " personal property". It has never been checked or tested. We do not intend on using it.

Whoever is representing you, lawyer, title co., agent, should be recommending an escrow: money to be withheld from seller until work is 100% done. Make sure it's more than enough.

Escrow three times the estimate.

Add the cost to remove or properly decommission the second septic system to the escrow as well.

Personally I wouldn't close until the septic is fixed and re-tested. Why pay a mortgage on a home you can't live in. The septic company could decide to drag their feet after you close. Since the seller picked the septic system how do you know it will be done correctly. If it isn't done correctly who is going to pay if the home is in your name?

If you don't plan on using the 2nd septic system find out legally how to close it up. It could be something as simple as nothing to pumping out and removing the tank. Of course you will have to fill in the hole.

Don't close until the work is done.

No if's and's or buts about it - have an addendum signed by both of you (buyer and seller) that the work will be done before closing. Who is selecting the vendor? If it's the seller, I would have a trusted septic inspector come out afterward to make sure it's done right.

Would you need and be able to get a Certificate of Occupancy with the Septic System in disrepair?

I'm not sure, The bank doesn't seem to care about the septic system. Both Realtors didn't even notice it (seller and ours) until I pointed it out in the beginning. Initially, they said the cost of the pump/inspection is required at the seller's expense, if they refused the realtors would split cost. This was after the contract was signed. but they refused so we had to pay for it ( by adding to the purchase price). That's when we found out it needed a new leech bed, Which apparently the seller is okay with paying for.

The seller had 4 weeks almost to do all this, and waited until right before the closing date to do the requested inspections on their side. Then This happened.

Right now there isn't any addendum in place about it, Our realtor did discuss with us that she would add it IF they couldn't have it repaired before we closed.

That is where my fear comes to play, However, Withholding ( escrow) 3X the estimate from the seller until it's completed and inspected makes sense, even after closing. The company is respectable, they serve most of the area, including a few fast food joints i worked at years ago.

You have the most leverage before closing.

If the sellers are dragging their feet, it might be because they don't have the funds. However, it's possible that the vendor replacing the drainfield will agree to be paid at closing. It's worth a conversation. I really wouldn't want to close with the drainfield needing replacement. What if there is an unexpected expense during the process of being replaced? Who picks that up after you are closed - you do. If you haven't closed yet, the seller pays for it.

I closed on a house with a $5000 escrow for a new well (30 years ago, can't get a well for that anymore). $8,000 later I had a well. So an escrow is no guarantee.

Our county has been for a while really cracking down on septic systems. Everywhere is different though. Our county you can't have just a working tank and leach bed unless grandfathered . A new or replaced septic system is like its own purification system. $$$$ Unless approved by the county you can't get an occupancy permit.

The sellers or buyers agent doesn't care because all they want is their commission at the closing.

I am surprised that the bank doesn't care. Our first house was septic and the buyers bank wouldn't close until the septic passed testing.

What would your new house be worth with a non working septic system since it is inhabitable ? I doubt what you are paying for it.

Sounds like the seller is stonewalling you for some reason.

Thank you for the responses- A lot of information I was unaware of.

the home was under contract previously, But the realtor said they backed out over flood insurance and the fact that the mobile home on the lot needed to be removed for approval.

I have no evidence of that.

I am asking my realtor tomorrow and letting my bank know about the septic, I feel like they do not know. It was not in the appraisal report, or the contract in any way since both of the realtors ( listing and ours) did not see it. I pointed it out reading over the listing after we went under contract ( well, after we sent the papers we asked when it would be inspected). This was early January.

What we were told, was that it would be pumped, and yes the health department did the inspection. They required the drain field replacement. the system is about 30 years old.

So from what I understand, AFTER the repair the health department will want to inspect that again? I had never heard of an occupancy permit, So, Is that only given after the tank is cleared by the health department? When I look up the Occupancy permit, it seems to only apply to multi-family dwellings, unless I'm not reading the right material.

I would also like to add, this was a "flip" house. They purchased it last year " sheriffs deed" and have done quite a bit of work to it. So far, It has passed everything else and we are supposed to close in two days. They signed a non-disclosure statement, which appears to be "typical" with flip homes. They knew nothing of the septic as they told us, In fact, They didnt even mention it had a septic other than the original realtor listing. I only know about the 2nd septic by walking the property and finding the exposed lids, this also wasn't disclosed.

Yes the health department will need to come out to inspect the new field. And what if it fails the inspection? You have been given good advice here. Do not close until this is fixed with stamped approval from the health department. In our town if your grandfathered septic system is failing you have to connect to city sewers. All at owners expense.

You should ask the health department. It varies from place to place. Here, you can do anything you want to an existing system, but a new house requires perc tests, approved design, permit, and inspection. I know other areas that are much more strict.

Non disclosure agreement! Not to disclose what?

It all makes sense. I will absolutely call the health department tomorrow, I'll try to call the septic place as well, I'm not sure if they will disclose any information, but its worth a shot. I've contacted my realtor and as well, see if we can get the contract extended due to the seller's inability to repair the issue before closing.

I have no idea, The reason for the "non-disclosure" was marked as " transfer pursuant to a court order such as probate or bankruptcy court". However, doing the work they did, seems like you would disclose what you know/ have done.

the entire house was checked top to bottom, the serious issues fixed. the only thing we couldn't oversee would be this septic issue.

The realtor did just notify me that it was still "functional" but required the bed replacement.

I feel like I have some knowledge now at this point thanks to you all. I can move forward being aware of what could happen, as well as the things to check.

Edited to add, I'm not a lawyer, and nothing I have said here is intended to be used as legal advice.

thank you, Absolutely. All of the decisions I make, happen to be my responsibility. My main objective was to see if this was a normal thing as it is portrayed to me, Anyone else who went through a similar situation, or if I was just being paranoid. All of which have been answered to some degree here, from a personal and or experience perspective. I personally Don't have the dough to pay upwards of $10K for a full-on replacement, or any other issues that may occur.

It's such a terrible thing that this has played out this way, given what we have gone through to get here, Including costs. This would be our third " go around". The first two would be seller refused bank required repairs. ( that I personally thought was ridiculous). Now this, days before our closing due date. much longer and the Loan rate will expire as well.

It is what it is, but I do know, Without a toilet, It's not going to fit our needs :)

I can tell you from personal experience that having to replace the leechfield in a newly purchased home is not what you want to do. First of all, you have to have a proper area to put the new field..... not near the old. And, it will cost you more than the contractor estimates, perhaps even a lot more. I agree - don't close until the work is done!

I prefer leach fields; leech fields give me the creeps:

Now that you say it's a flip, that explains the reluctance of the seller to replace the drainfield.

IME (I'm a Realtor), many sellers that specialize in flips tend to concentrate on cosmetic improvements rather than the systems of the house. That is a selling tactic (distraction). This is why inspections are so important - even in a flip and even in a new house. You have to have an independent inspector(s) that report to you the condition of the property so you can make an informed choice. You found out about the failing drainfield. Finding out now before closing is a huge benefit to you as a buyer. Replacing a drainfield is expensive (in my area anyway). Have the drainfield replaced before closing. Don't let them bully you into having the title co or attorney hold an escrow for the proposed repair amount. It isn't unusual for the actual cost to be much more than the proposal.

In my area you can't get a mortgage unless you have a functioning septic/leech field. There is no way I would close without this being done. If I had to guess, I'd say they already knew there were leech issues and that is why they were dragging their feet about the inspection.

Couple questions... What is wrong with the current field that tells the inspector that a new leach field is required?

Are you certain that the new area where the leach field is going is suitable for perking? I have seen lots that perk in one area of ground and not perk in other areas.

It has been my experience too, that lenders require a working septic system in order to fund.

Do not close until all agreed upon repairs are done and reinspected. The seller knows of the issues now, so they and the Realtor would have to disclose this issue to any other buyer, if your deal falls apart. If your deal gets shaky because they refuse to perform, you need to "remind" them of this fact. This gives you leverage and gives them reason to fix it now.

I live in Ontario, we purchased our house not knowing what a septic system/bed was all about.
We had a so called pump out inspection clause in the contract which we thought was completed .they did have it pumped out for $375.00 but at the time we didn’t know that an inspection should have a detailed 5 page detailed write up. Did you receive a detailed write up on the septic its self? We paid $900.00 to have the inspection done and found out that the concrete tank is showing mild fractures on the top and probably has 8-10 years , we also found that the owner of the property can do there own bed , and the previous owners did , they put it right in the middle of the back yard , and we were told that they had no choice because they couldn’t use the same area it was previously in.
In Ontario its more expensive to remove the septic system , hopefully you have the proper inspection detailed report because it’s possible that the system it self should have been replaced with the bed.
Had we known all this prior to closing we would have negotiated different.
New systems for us are $10-15,000.00 depending on the size and that’s just the septic, not the bed.
Our real estate agent didn’t notice any of this , so its great that you have received great knowledge from everyone here.

This was after the contract was signed. but they refused so we had to pay for it ( by adding to the purchase price). That's when we found out it needed a new leech bed, Which apparently the seller is okay with paying for.

I would be very leery of what else wasn't disclosed. You did have a home inspector? And you do have a good RE lawyer?

I would also like to add, this was a "flip" house. They purchased it last year " sheriffs deed" and have done quite a bit of work to it. So far, It has passed everything else and we are supposed to close in two days.

I hope the inspector looked very closely at the house because this is not sounding good.

They signed a non-disclosure statement, which appears to be "typical" with flip homes. They knew nothing of the septic as they told us,

BULL PUCKY! They knew but were playing dumb which is why they dragged their feet on having it inspected and now are dragging their feet on having it replaced.

In fact, They didnt even mention it had a septic other than the original realtor listing. I only know about the 2nd septic by walking the property and finding the exposed lids, this also wasn't disclosed.

They knew of the second septic unless they're total morons. Again, what are they hiding?

I did have something similar in my second home but the homeowners did replace the septic before we moved in. We would not have moved in if it hadn't been replaced.

following for updates.

Have to agree with what has been said. Just remember that regulations for septics vary from state/county as does real estate law. That your state does not require a lawyer to be involved is not bad . What you really need to do is find out is that the repair will be done properly. As has been stated:; the bank doesn't care, the sellers don't care, the realtors don't care, as much as you do (and should). Your are not looking for a brand new septic system but one that should last a reasonable period of time. I might even offer up that you would be willing to pay for a week of what would be your mortgage expense. Or better yet have the Realtors pay for it. Don't hesitate to to ask questions here.

So what happened?