Plumbing Issues on First Deal Please Help

[Marie Louis]

In September of last year I purchased my first investment property from a developer. When the developer acquired the property it was originally a SFH that was then converted to a two unit property. After analyzing the deal I decided to purchase the property from the developer since I had the opportunity to purchase it before it was listed on the MLS. 

About 3 months later, it was discovered that the property has a cesspool & not a sewage line as stated in my closing documents. The cesspool was covered & it was not until I have having issues with sewage backup that a neighbor pointed out where the cesspool was located. The cesspool is very small in capacity, about 500 gallons, which is too small for a 2 unit property. It would costs about $700 a month to pump/maintain the cesspool which would make this a terrible deal & I was informed by the DEP that connecting to the city line would cost about $30000 since there is no municipal sewage line fronting the property.

I'm wondering what my options are, can I sue the party I purchased the property from since this information wasn't disclosed ? 

[Marcia Maynard]

A property needs either a septic tank system or connection to the city/county sewer system.  Cesspools are outdated and not environmentally sound.

When purchasing a property the buyer needs to do their due diligence, which would include a comprehensive inspection. What happened here?

Why would it take three months to discover the property wasn't connected to sewer? Certainly the city/county water department would have had a record. Do their documents show water service only? Wouldn't this be discovered when you recorded yourself as the new owner of the property with the water department?  

Also, it's interesting that the neighbor knew about the cesspool and its location, but the developer did not. If the developer knew about the cesspool (or at least that the property was not connected to city sewer) and it was misrepresented in the documents and disclosures, that is a more serious matter. It's also possible the developer was misled by the previous seller, but again due diligence and inspections should have revealed this. It's all very odd.

Every jurisdiction has their own standards and regulations. A qualified real estate attorney may be able to sort this out for you. Gather all documentation and find someone to represent you.  You may be able to settle this with the developer without a law suit.

What is your goal?  Do you want to keep the property and have the sewage problem rectified?  Or do you want out of the deal?