Selling House and Failed Septic Inspection

[Travelover]

Going back to the first post which says purchase agreement contingent on passing inspection. So it failed septic which means no purchase agreement. Unless there is a clause which says Seller has to remedy any deficiencies. Which I have never seen but could be there I guess. Anyway seems to me the OP has good options. Like someone already said, this deal has fallen through, so do the upgrade and readvertise at a higher price later on.

No, actually the deal has not fallen through. I can get quotes on the repair and escrow that amount, which is what I plan to do. I have a couple of ugly choices, but my initial post was to find the best way through this.

 

[teejk]

No, actually the deal has not fallen through. I can get quotes on the repair and escrow that amount, which is what I plan to do. I have a couple of ugly choices, but my initial post was to find the best way through this.

Yeah...you stated that your market is not a seller's market and that the property has been on the market for awhile. I was in the same spot a few years ago on my NY house. Finally decided to bite the bullet and take my beating so I could open a new chapter.

 

[Travelover]

Yeah...you stated that your market is not a seller's market and that the property has been on the market for awhile. I was in the same spot a few years ago on my NY house. Finally decided to bite the bullet and take my beating so I could open a new chapter.

That is where I'm at, too. I'm 64, so I only have a finite number of sunrises and sunsets left. At some point, it seems like a good idea to spend some money to make problems go away. But still, I want to know the facts before I open my wallet. And I'm not getting thrashed, just not making as much on the sale as I'd hoped.

 

[MinnesotaEric]

OP here. So, my crooked real estate agent, who has from day one assured me that if the septic test failed, he'd negotiate a cost split with the buyer, now says, "tough luck, you have to pay the full cost, or you can't transfer the title." Shame on me for even slightly trusting him. Next step is to meet with the soil guy from the county and see how expensive a system I'm stuck buying for the next guy.

It isn't unexpected that a buyer refuses to participate in the repair as the buyer's good faith offer assumes a functional septic system. That said you have some choices.

You can pull the plug on the purchase agreement and cancel. However, going forward in any future showings, all RE agents will disclose a material defect in the septic system that must be resolved in order to transfer and have quiet enjoyment of title.

Although it is not unexpected that a buyer is not interested in resolving material defects, if your representation made the claim that he or she would (attempt?) negotiate buyer participation in resolving material defects, you could call your agent's broker and attempt renegotiate the selling broker's commission (your agent would experience a commission-ectomy). It is unlikely that a broker would effectively participate in resolving your material defect unless the agent didn't attempt to negotiate buyer participation. Alternatively, you could file a complaint to your state commerce department.

Speak with the agent's broker if for no other reason than to find out what contractor he or she suggests using and if there are or are not any conflicts of interest with his or her recommendation.

 

[Steppenwolfe]

No, I'm sure he would say it is what is called "puffing" in the sales business, which means that if you catch me in a lie, I was "puffing".

So, do we call such people puffers, or LIARS???

 

[teejk]

That is where I'm at, too. I'm 64, so I only have a finite number of sunrises and sunsets left. At some point, it seems like a good idea to spend some money to make problems go away. But still, I want to know the facts before I open my wallet. And I'm not getting thrashed, just not making as much on the sale as I'd hoped.

I took a bath on that NY house...sold it in 2010 when NOTHING was selling for much less than what I paid for it in 2001when EVERYTHING was selling but the carrying costs (mortgage, outrageous property taxes and then insurance because we were cancelled because it was vacant...it's an east coast thing I think where vacant buildings tend to spontaneously combust) were killing me. Was time to stop the bleeding. No regrets. When we bought it we used an agent (that technically was not our agent under real estate law because they all represent the seller) that convinced my wife to buy a 4 BR house. When it came to sell, we initially listed with the same agent at which time she said that according to town records the house was only a 3 BR house with probably an illegal den and that the finished basement never pulled permits and would have to be removed. At the end of our listing period with her I fired her and found a different agent that agreed to "move it" with any reasonable offer (same instructions given to agent #1 btw but in addition to holding out for a higher price to boost her commission she was worried about what the "comps" would look like on a sale of any nearby property in the future...all on my dime because I was paying the carrying costs in the meantime). Agent #1 didn't understand why! Then she started rumors amongst the agent community that there were septic issues with the house (was news to me but perhaps she knew that from the time when she convinced us to buy it). I had long held real estate people in the same league as the common carp. After that NY thing I have a newfound appreciation for carp.

 

[PILOON]

Hey, I built my 3 septic systems myself for very minimal costs and that 25 years ago.
All three still doing just fine except one is on 3 rd pump.

My present home was concrete tank plus pump and pump station load of crushed stone and piping etc (3rd pump), this one pumps uphill some 25 ft to the field.
On one I simply dozed 14 ft wide and dumped a load of crushed stone and laid out the piping , covered with geotextile and nice top soil into which they grow some nice veggies. (we were told that shallow rooted veggies and flowers only helped the fields and judging by the results I have to agree)
Now all the rules are changed, you need a soil engineer for 'perk tests' @ $500 a pop, certified installer, and $20,000 +/- and probably a $XX city permit.
Today 'ekoflo' is the in thing and that replaces 'bionest', wonder what is the next generation.
Heck my parents had a propane fired toilet that needed no tank or permits, then there was the compost toilet that gobbled up all your 'c--p' but you sure did not want to be downwind.

 

[Travelover]

OP here. I called my agent out about his previous assurance that a cost split could be worked out with the buyer. He flat out lied and said he'd never said it. I'm going to see if I can close the deal, but I have zero confidence in this agent now. I'll hire an attorney to go over the closing papers, as this agent clearly is not trustworthy.

 

[sailfast]

OP here. I called my agent out about his previous assurance that a cost split could be worked out with the buyer. He flat out lied and said he'd never said it. I'm going to see if I can close the deal, but I have zero confidence in this agent now. I'll hire an attorney to go over the closing papers, as this agent clearly is not trustworthy.

You should always do that.
Agents are not attorneys. In Ohio it is illegal for an agent to give legal advice.

Hey, I built my 3 septic systems myself for very minimal costs and that 25 years ago.
All three still doing just fine except one is on 3 rd pump.

My present home was concrete tank plus pump and pump station load of crushed stone and piping etc (3rd pump), this one pumps uphill some 25 ft to the field.
On one I simply dozed 14 ft wide and dumped a load of crushed stone and laid out the piping , covered with geotextile and nice top soil into which they grow some nice veggies. (we were told that shallow rooted veggies and flowers only helped the fields and judging by the results I have to agree)
Now all the rules are changed, you need a soil engineer for 'perk tests' @ $500 a pop, certified installer, and $20,000 +/- and probably a $XX city permit.
Today 'ekoflo' is the in thing and that replaces 'bionest', wonder what is the next generation.
Heck my parents had a propane fired toilet that needed no tank or permits, then there was the compost toilet that gobbled up all your 'c--p' but you sure did not want to be downwind.

 

[Travelover]

You should always do that.
Agents are not attorneys. In Ohio it is illegal for an agent to give legal advice.

I get that. But typically the commission is 6% on a real estate deal. The agent splits that with the other agent and other two brokers, so he gets about 1.5%, more or less. On a $500,000 sale that is $7500. So, for that much money, one would expect that the agent would be looking out for your best interest.