compliance. If you do choose to finance, lenders typically are reluctant to allow holdbacks for reasons other than the ground being frozen. It's a major health and environmental issue that needs to be addressed well prior to closing in some form or another.
Double check with your attorney, but I am fairly certain you can convey a home with a failed title V. The Title V came into effect to protect the banks in 1978. Now you may need to do the septic inorder to refi the property. It is really important that you do your due dilligence before you close. Cash is a wonderful tool in this market, but you need to be really smart how you spend it. All the best.
Hope that helps,