Home Buying in Taunton>Question Details

 Yi.,young, Real Estate Pro in Los Angeles, CA

My client bought a house and seller disclosed sewer is connected it. but just found out it is septic. how can i advise to my buyer?

Asked by Yi.,young, Los Angeles, CA Thu Nov 21, 2013

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Hi Yi,

See if your client was provided a copy of the appraisal. Check to see if it reflect private sewage on page 1 of the report. Also, was a home inspection conducted? If so, that is something that should have been checked. Call the local municipality's public service department to find out what their records indicate as sewage for the property.

Gather all the information you can and have the client seek legal guidance. At some point, someone goofed and if expenses came about due to the client not knowing there was a septic. An attorney would be able to provide guidance on who is the responsible party and hopefully that party's E&O insurance will step in to rectify the situation.

Hope this helps,

The Driscoll Mortgage Team.
1 vote Thank Flag Link Thu Nov 21, 2013
I would contact a legal professional to help with this answer and to save time and money.
(I'm on the Cape, but I can help you choose a local pro if you want help doing so.)

(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 Fri Nov 22, 2013
Are you not well informed about the communities in which you are selling? If there was an erroneous disclosure, the buyer should be able to back out of the transaction if they choose, or perhaps negotiate a lower price.
0 votes Thank Flag Link Fri Nov 22, 2013
With that sort of over sight in giving the correct information, they should be able to work out something or back out. You should ask your buyers if the sewage system information changes their desire to buy the place. That might not be a deal breaker for them.
Flag Fri Nov 14, 2014
First step is to check the home inspection report. Did the inspector indicate it was public or private sewerage? If the inspector indicated public sewer, your buyer might have a case. Second step is to contact your broker as this will be covered by your E & O policy and you don't want them to be blindsided. Third step is to have your client consult with a real estate attorney to see what legal recourse there might be (fair warning: once the closing is done, there is little recourse). Fourth step is to contact the selling agent so that they can inform their broker as well.
0 votes Thank Flag Link Fri Nov 22, 2013
I would give them the facts and ask what they want to do.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Fri Nov 22, 2013
You tell them the truth and you may want to contact your E&O insurance company as you as the Buyer's Broker would be expected to know this. You may also want to contact the home inspector as this is something they should have picked up on when doing their inspection. Seller Property Disclosures aren't legally binding and should never be relied on. If the listing agent indicated in the MLS that it was connected to sewer rather than on septic, they too are going to bear responsibility. If sewer is actually available then the worst case scenario is that the house will have to be hooked up if your client insists. Myself I want to be out in front of this so as to preserve my relationship with my buyer. Stuff happens it's why we have E&O and what matters is how you handle it. Stand up, call yoru buyer, let them know, apologize and help resolve the issue.
0 votes Thank Flag Link Fri Nov 22, 2013
The buyer must contact a NC Real Estate Attorney for proper support to this issue. Both the Listing and Buyer's agents have misrepresented the property, especially the listing agent.
0 votes Thank Flag Link Fri Nov 22, 2013
What town are they buying in?
I would be concerned that the seller, assuming they thought they always had sewer, have done no maintenance/pumping of the septic.

They should have a real estate attorney to discuss this.
0 votes Thank Flag Link Thu Nov 21, 2013
in Califonia
Flag Thu Nov 21, 2013
Check with your attorney and buyer agent as he to has fiduciary relationship to you.
0 votes Thank Flag Link Thu Nov 21, 2013
Hello Yi,

I have seen this happen before and it usually does not end well for all concerned. First, make sure that you are correct that the property is in fact on a septic tank and then alert your client....and your broker.

I am assuming that it has already closed escrow. If that's the case, your client should seek legal advice immediately.

Best of luck,

Barbara Grandolfo
0 votes Thank Flag Link Thu Nov 21, 2013
well depending on where you and your client are located I would probably advise each of you consult legal counsel and make your brokerage aware of the situation.

Hope that helps,
0 votes Thank Flag Link Thu Nov 21, 2013
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