Understanding Septic Systems for Real Estate Agents

Overview

Septic systems are common in rural and some suburban properties. Understanding how they work and what buyers and sellers need to know is crucial for a smooth transaction. This guide outlines essential information for listing and buyer agents to ensure a thorough process when dealing with properties with septic systems.

A detailed write up is below the video!

What You Need to Know as a Listing Agent

1. Seller’s Disclosure: Ensure the seller includes the septic addendum with the seller’s disclosure. This addendum typically uses terms like “on-site sewage” rather than “septic.”
2. Last Pump Date: Confirm with the seller when the system was last pumped. If they haven't had it pumped in the previous year, there's a good chance they're not maintaining it well. Ask questions about maintenance and consider having it pumped or preventatively maintained unless the seller is confident all is well. Advise the seller that they will need to pump again prior to the option period or closing.
3. System Type: Identify the type of septic system. Most newer systems are aerobic, which use mechanical parts to spray treated wastewater onto the yard, while older systems may be conventional with leach fields.
4. Associated Documents: Upload the seller’s disclosure and the on-site sewage addendum as associated documents in the MLS for potential buyers.
5. Encouraging Maintenance Contracts: Encourage sellers to provide details of any existing maintenance contracts, although this is optional.

What You Need to Know as a Buyer Agent

1. Identify System Type: Familiarize the buyer with the type of system installed. If they are considering a property with a septic system for the first time, explain the difference between aerobic and conventional systems and any maintenance involved.
2. Offer Inclusions: It’s common to request the seller to have the system pumped prior to inspection or to provide a credit for pumping if it hasn’t been recently maintained.
3. Inspection Protocol: Many inspectors require the tank to be pumped to evaluate it properly. If the septic hasn’t been pumped recently, request that the seller pump it before the buyer’s inspection.
4. Signs of Issues: During showings, look for signs like standing water in the yard, particularly during dry weather. Green patches in the yard could indicate septic effluent, which may suggest a potential issue.
5. Specialized Inspectors: Septic inspections are typically handled by specialized inspectors or general inspectors with septic certification. This is crucial since repairs or replacements can be costly.

Additional Tips

• Education on Septic Maintenance: Inform buyers on best practices, like avoiding antibacterial cleaners that can harm septic bacteria, limiting garbage disposal use, and scheduling regular maintenance.
• Be Aware of Local Norms: In some regions, like Austin, it’s standard to pump the septic before inspection, so adapt your offer and negotiation strategies accordingly.
• Documentation Storage: Keep records of inspections, pumping, and any repairs as these can be helpful in future transactions or for ongoing maintenance tracking.