First of all, they need to understand if the system is actually â€œfailedâ€ by the State standard â€“ meaning that it is breaking ground/discharging into public waters, backing up into the dwelling, leaking from the tank directly or leaking directly into the basement of the home. Or did it â€œFailâ€ by the inspection standard â€“ meaning anything from the list above or something as simple as a broken baffle, a damaged d-box or a crushed pipe in the absorption area. Failure by the State standard, typically called a system malfunction, gives the Health Departments authority to force a repair of the system, legally if need be. Failure under inspection guidelines â€“ typically call Unsatisfactory Condition â€“ can require minor repairs to bring the system into its designed condition. With respect to selling the home, escrows are common for repairs in either case. There is no reason that a contract canâ€™t be signed that delineates the responsibility for the repairs at any level. The bigger issue usually arises from the home owners insurance companies requiring a letter of satisfactory operation of the onsite system before they will provide coverage.
So, first they need to figure out if itâ€™s a health issue failure or a simple repair to bring the system back into compliance. Then they need to verify the requirements from their home owners insurance for coverage.