Having the soil under the foundation change from dry to wet to dry over and over is not good. 

All minerals, water, top soil, all the grows upon the surface and the air above is owned by that title holder.

@Jessie Niu I have a post somewhere on the forums detailing the entire process, but basically it had to do with a decomissioned oil tank that the bank was unwilling to remove, so we asked them to give us $50k back at closing to assume the risk(We did soil sample tests and other tests), they settled with lowering the purchase price $50k.

I am not sure how to cure this, other than taking soil samples where the tank used to be.  

The flooding is not impacting the house, just making the backyard pretty wet for a day or two until the precipitation infiltrates the soil (I have included a picture below). 

Once established, this tree is known for its tolerance of drought, air pollution, and a wide range of soil types.

Also, keep an eye out for an oil tank... in my neck of the woods they are one of the biggest issues with old houses and can cost thousands of dollars if they have leaked and the soil needs remediation.

Sandy - Allowed with limits (separate heater, fire insulation between dwellings....)West Valley - Does not allowTaylorsville - Does not allowSalt Lake County - Allowed (Kearns, Magna, Cottonwood Heights....)If you want more info the best thing to do is to call the city office and talk to the Planning and Development department.  

To Sandy Blanton's earlier questions, I gave my opinion of part 1, but part 2 of your question, "what are the penalties?"

I have no idea about soil conditions where you are or if the land is virgin or been previously developed.