Investment property with a cesspool

[Debra Irvine]

We purchase an investment property, we had our own inspector come out to the house prior to closing and the hard money company we used also had their inspector come out to the home. We just found out when we listed the home with a realtor, that the home has a cesspool! In New Jersey you can not sell a home with a cesspool, it must be upgraded to a septic system. We spoke with the health department and they have no record of what type of system the house may have. But I'm scratching my head, that I had two inspectors come out and no one ever brought up about the sewage system, and the fact on how the man we bought it from was able to sell this home to us, when in fact the New Jersey laws states a home can't be sold with a cesspool. Am I missing something?

[Caroline Gerardo]

Your Inspector error. Hard money company is not certifying the property. You need to hook into the public sewer system if you can and this is not rural. Involves permits, fees, digging a trench, and the plumbing hook up. How far is sewer line? 3000- 9000 depends.  Digging new septic maybe 3000- 5000. In order to sell the system has to be complete and operational. Fill old cesspool tank with sand or fill dirt, or what your county/city planning requires.  Cesspool was used in older construction in rural areas and is, well, gross and gets into water source although it's counterintuitive that septic filtration field is better. If seller of house to you was not owner occupant they may get away with not disclosing and it's up to buyer to inspect. Is it worth it to sue? Probably not. Attorney will want $5000 retainer and can you 100% guarantee a win and do the parties have enough money to pay you? How long have you owned subject and have you been pumping out the cesspool? If you have not been pumping it over long period of time you may get fined. Increase your asking price by $5000 and fix it now, call it a learning experience.