What did I do wrong? Septic Mess

Question

Hi everyone,

I closed on my first duplex a month ago. Of course, "as is" sale with 5 day inspection period.

I've come to find out that the house has a huge septic issue. There are two septic tanks, one legal and another one illegal (under a concrete driveway and unpermitted). The legal one is under an illegal addition that was done. Both have to be removed, with the demolition of the illegal addition (I was counting on legalizing), and a new one installed along with drain field.

I'm guessing this is at least a $20K fix.

Any thoughts from experienced investors on how to avoid this in the future?

Of course, I will now be especially vigilant about septic tanks and their location/inspection.

Thanks in advance.

Art in Miami

Wayne Brooks · Answer

@Rosie Giacosa Another thing of course to check the county bldg dept for permits....this would have shown the illegal addition.  On a totally different note, I hope you bought with title insurance (has nothing to do with this issue).  There are a few groups selling properties they bought at HOA Foreclosures (which still have massive Mtg.s attached to them) trying to pass them off as "REO's we bought in bulk".

Sam LLoyd · Answer

I've seen several legal septic systems with the drain field under a building.  I've seen a couple engineering designs where the leach field is under a building, and a back up leach field is already designed in a different location in case of failure.  However, a tank under the building?  I don't think that's a good idea.

YOU ARE NOT ALONE!!  I too just bought a 4plex 'as is' without the septic inspection only to find that it's got the same issues.  However, I'm crossing my fingers at the moment because it appears to be working, and I won't need it to be legalized unless I'm going to sell.  20k seams like a very reasonable price for that project.  I would have estimated a bit more.

Colleen F. · Answer

@Jason Hirko we do have a drive over tank in our driveway but is specifically rated for that. Actually I think the reason we have a drive on tank is because the previous owner didn't and guess what happened? Tank was legal to install in 2006 but not sure about now. We don't allow trucks on it though.

I have had a number of houses with septic including the one where where I said what is that board and someone said don't mess with that it is probably your septic and it was...a brick septic with a wood top.. not today.  Not sure what the law is but I was pretty sure they don't allow septics under the house.  @Rosie Giacosa did you know the septic was under the house?  even for as is there are some things that should be disclosed.

Jason Hirko · Answer

@Colleen F. Tanks should never be under the house, or even the driveway. Firstly, they are not designed to last forever, but more importantly, aren't designed for all that weight. If you've ever seen one collapse, it is ugly (and stinky)

Colleen F. · Answer

septic inspection and know the local regulations.  Here if you do so much reno (I think 30%) you need to update the septic so I know it is no consolation but you might have had to update septic anyway.   I don't think it is legal anywhere to have the septic under the house. Not sure if anyone can comment on that. My sister has a neighbor trying to sell a house like that. It is on 10 acres and the septic is under the dining room addition.. what were they thinking....

Rosie Giacosa · Answer

Seller is a large REO investment group out of state. They bought it from a bank as part of a large foreclosed portfolio. I doubt I can prove they knew about this issue in court so that isn't going to happen.

Rosie Giacosa · Answer

Check on the septic inspection. We thought it would be a waste of money prior to closing but that's being penny wise pound foolish. From now on, septic inspections will be part of our to do before closing.

Thanks

Justin Fox · Answer

Yep.  Always, always get a septic inspection.  It may not always work to find issues, especially when inspecting during the hot summer months.  But it definitely would have caught this or intentional abuse of the system (intended or not) like flushing 4,000 condoms over the years.  To me this is a clear case of negligence of the previous owner.  Can you not take them to small claims?

Jean Pierre · Answer

I completely missed the as is part

Jean Pierre · Answer

Worst come to worst I would contact your title company there should be some insurance since none of this was disclosed to your prior to purchase

What did I do wrong? Septic Mess

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