For MA investors about title 5(sewer/septic) - Posted by BJS

Posted by BJS on October 24, 2000 at 07:44:00:

Thank you for your advice. I am not actually in a deal, but when talking to a potential client I realized the condition of the septic may be an issue. Just thought I would see what others are doing out there in MA in terms of septic. So it seems it would be difficult in general to do the quick closings seeing how it will take two to three months to get the septic checked out. I guess one way to do the quick closings on properties with septic systems and not worry about the cost of possibly replacing the septic,would be to automatically figure in replacing the septic system regarless of the report when going into the deal. That way I would be covered whether or not the septic needed to be replaced.
Where abouts in MA do you invest? You can email me offline if you like(or not at all…I just appreciate your input!!).
Thanks again for your advice.


For MA investors about title 5(sewer/septic) - Posted by BJS

Posted by BJS on October 23, 2000 at 17:26:33:

How have any of you dealt with title 5 issues. Do you have the seller get it inspected and deal with it? What about when closing in a week. How do you get inspection in a week for title 5? Is title 5 necessary for a sale. I know when dealing with a realtor it is necessary, but how about us investors? Any experiences or info you may have on this matter is greatly appreciated. As always, thanks in advance!


Re: For MA investors about title 5(sewer/septic) - Posted by Walt Carey

Posted by Walt Carey on October 23, 2000 at 20:44:12:


I assume you’re buying this property, correct? If thats the case, the prudent MA investor will require the Seller to have the septic system inspected (at the Seller’s cost)and provide him/her a copy of the inspection report thereafter. Costs of an inspection can vary; figure on $500-1k to be safe. Can the sale go thru without a Title 5 inspection? Sure it can. Just add a clause stating you’re aware of the system failing and agree to buy the property as is. That covers the Seller…and the Realtor. But to not have an inspection report prior to taking title is playing Russian roulette in my opinion.

One week 'til closing? You might be able to get it inspected prior to your closing, but I think that might be tough. The guys who do Title 5’s are usually swamped up in to December.

If it were me, I’d get an extension from the Seller. I’d ask him point blank about the condition of the septic system. In MA, he has an affirmative duty to disclose to me everything he knows about it. If he tells me he thinks there’s a problem (or potential problem)I use that for an extension. Shouldn’t be a problem there.

If it were me, I would not go through with a closing without an inspection. I just bought a house a couple weeks ago that failed Title 5. I bought it anyway. My estimate to repair had it at close to 40k to bring it up to code! Imagine if I didn’t have that report? I’d rather not!

Walt Carey