Everything goes great with agent BOB's transaction, smooth inspections, easy financing, nice listing agent and seller, and it closes nicely and on time.  He's filed all your documents away and is thinking about the Fall market.  

One day, several weeks later, the call, from the buyer.  "We wanted to do XXX, and we found out that there is a septic field in the yard.  We purchased the house because we wanted to XXX - this is a big problem, what should we do?   Do you have a copy of our documents?  Should we sue?"

DEEP BREATH, "let me look into that and get back to you?"  Oh, poo!  That is really going to reck an agent BOB's day/week/month/year/decade/life.  Okay, maybe it is not the end of the world - but this can be an expensive issue to deal with and full of liability potentially. 

In many urban areas Sewer vs. Septic is not a practice area of concern.  In very rural areas, it is likely that there is a septic system but the agents there are knowledgeable (unless they are new).  When it comes to suburban areas however, it can really stink as it is a mixed bag.

Some neighborhoods, that were orginally built with septic fields were converted to public sewer.  However, in some areas this wasn't mandatory and the owners could opt - not to hook up.  Some people could hook up to public water and not public sewer - so the fact that it is no longer on well water may not be an indicator. 

So what's an agent to do?  Either listing or selling it is a good idea to:

• Be familiar with the neighborhoods and areas you work in
• Read other listings in the neighborhood and check tax records
• Contact the Water and Sewer Authority
• Don't let lot sizes fool you sometimes there are public septic systems
• Understand Sometimes a neighbor's septic system is on a property because of a subsequent subdivision
• Just because there was a front foot charge - doesn't mean there is a hookup
• Know sometimes there are private companies or municipalities providing water and sewer
• If the seller didn't know they had one - they weren't maintaining it - and you need a plan
• Ask for the Plat and/or sub-division plat - easements; septic, etc. are often identified
• Understand the process of testing and problem resolution - before you get into a problem
• Talk to the neighbors - you learn a lot and it is a great way to get business in the community
• Review disclosures carefully with clients and make sure that everything was completed

Asking a lot of questions can help avoid a lot of grief later on.  Sellers can take a proactive stance in checking and pumping out the septic system and have reports available for buyers.  If the seller doesn't know where the access is...chances are it hasn't been pumped out recently or correctly.

Also remember, that if the septic system fails, local regulations or the property itself might not provide a correction.  In other words, it may be a problem that is not correctable and you are up a creek without a paddle.

When the problem happens like the example above, after settlement, well...call your broker right away if anyone mentions the word 'sue' even if it isn't related to you (at this time).  Not contacting your broker or your E&O coverage has the potential to put you in a position that you and/or your broker is not covered.  Follow the direction of your broker and consult an attorney if necessary.  This may turn out to be nothing but that is what the broker and the E&O policies are there for - to protect you.

Keep detailed records of the transaction and maybe develop checklists. 

We are the experts - buyers and sellers rely on our knowledge and experience.  If you don't understand an area in which you practice - educate yourself or hire someone who does.   If you need to refer a transaction out, do so. 

By all means, keep your senser of humor - after all....shit happens!