Home Buying in 02649>Question Details

Karen Nicker…, Real Estate Pro in Mashpee, MA

Can the closing still occur if the Title V septic has not passed inspection?

Asked by Karen Nickerson, Mashpee, MA Mon Jul 15, 2013

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Karen, in the past year I closed on two properties that did not have Title V at closing. There are a few banks that will do this, and the usual procedure is that the bank withholds the cost of the septic plus an additional 50% for a stated period of time. You can reach me at 508 292 7939 if you want to discuss this further - or by e-mail afeehan@kinlingrover.com.
0 votes Thank Flag Link Mon Jul 22, 2013
Karen there are a few banks that wil allow a hold back for septic system . I am Jamie Regan a Realtor with Robert Paul properties . I can be reached by cell phone at 508 284 5200.
Web Reference: http://Jamieregan.com
0 votes Thank Flag Link Thu Jul 18, 2013
Yes, but....

It can be complicated especially if their is financing involved.
0 votes Thank Flag Link Mon Jul 15, 2013
Hi Karen,
Some lenders used to allow a "hold back" oe 1.5 times the estimated cost of the new system.
However, I have seen a change to requiring the system be in the gtound and operating at closing.

A cash deal will be worked out between the buying and selling parties, with the direction of their attorneys.

If a system fails, there are usually 24 months to "fix' it or replace it before there are health department problems.

I would contact a local legal professional to help with this answer and to save time and money.

(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.
0 votes Thank Flag Link Mon Jul 15, 2013
In some instances a closing may occur. How ever the bank, and attorney keep a suffenicent amount for a new system in escrow. when the new sysytem is installed the attorney hold the escrow will release the funds. ahow ever make sure the bank is on board with this arrangement.
agood aluck
0 votes Thank Flag Link Mon Jul 15, 2013
Is financing involved? The lender may not provide the loan without a passed Title V. Otherwise, if there is an arrangement between Seller and Buyer to accept the condition, the new owner will own the responsibility of getting the septic to pass inspection with the city else pay the penalty. Either way, the town will expect a passed Title V at some point else the habitability of the property could come into question.
0 votes Thank Flag Link Mon Jul 15, 2013
Massachusetts law requires that a property that is serviced by a septic system, cesspool or other private waste disposal system be inspected before a home is sold. A septic system has a tank, distribution box, and soil absorption system commonly known as a "leach field". A cesspool has a pipe carrying waste from the home to a pit which distributes liquid waste.

A Title V inspection is valid for two years. It is valid for three years before the sale if you have records proving that your system was pumped annually since the inspection.
If weather prevents an inspection at sale or transfer, the inspection must occur as soon as weather permits, but no later than six months after the sale or transfer.

While the law does not specifically mandate that the seller is responsible for repairing a failed system, as a practical matter a buyer's financing will usually not be approved unless a Title V certificate is obtained prior to closing.
0 votes Thank Flag Link Mon Jul 15, 2013
Yes. If the Title V has not passed a closing still can be done, as long as the closing attorney is holding money for the new Title V or the Title V correction in order to comply.
0 votes Thank Flag Link Mon Jul 15, 2013
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