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Creative Solutions to Transaction Barriers: Private Sewer Systems

By
Real Estate Agent with Tami & Steve - Coldwell Banker Burnet
Many rural properties have unique issues and barriers to purchase. One of the more significant barriers are that they often are not connected to a central sewer system. Therefore, many times, the private system that is in service must be "certified" by a local governing authority. And in many jurisdictions, if the system is not in compliance, the sale cannot move forward until the private sewer system is in compliance. Well, if the property is being offered by a bank (post-foreclosure), they rarely will make any changes or financial commitments - and that includes certifying or updating private sewer systems to allow the sale to go forward. Well, as Shiela found (follow link below) while representing a buyer in this predicament, she looked to the governing authority. Turns out they had a creative solution for just this situation. Click below to find out more...--> http://central-minnesota-real-estate.blogspot.com/ Jesse Hopkins-Hoel http://www.I-94Homes.com/team
Susan Jackson
America's Network Realty Group, Inc - Sandy Springs, GA

Hi Jesse,

I am just writing a contract for a property with a septic tank, what solutions did they come up with

Thanks

Jan 21, 2010 05:58 AM
Jesse Hopkins-Hoel
Tami & Steve - Coldwell Banker Burnet - Saint Cloud, MN

Susan, in this case, the county has a conditional certification that allows the home to close. Then, post-closing, the county has a financing option to update the system. Traditionally, this was a show-stopper for buyers who didn't have the resources to update the system at all. The cool thing here is that the new $9000 loan doesn't go agains the clients' DTI ratio. All parties/interests are cool with the arrangement as, i believe, it is ultimately secured by the property.

Jan 21, 2010 06:36 AM