Seller or Buyer responsible for well/septic/termite inspections?

Where i conduct business in Westchester County, NY 

The home insoection is fully on the buyer, however: certain items that fail are the seller's responsibilty to fix or replace: ie: septic failings, radon, well, etc.

Beverly, you make some excellent points.  I totally agree with you regarding who hires and pays for the inspections.  The buyer needs to select the inspectors and pay for inspections.  However, for VA loans, the Seller must pay for the termite inspection.

Caveat emptor. buyer beware and buyer be smart. All major items should be inspected by buyer paid expert as a matter of course. Great reminder and post to a sometimes forgotten golden rule...

in Maine the norm is that buyers pay for any and all inspections they wish to do. It also clearly states they are free to chose whom ever they want to do the inspection. Surprised to see other areas of the country the seller is responsible for some of the buyers inspections...

Although we can negotiate anything, it's up to the buyers to do and pay for all inspections.

Lots of "it depends". In Washington the Septic inspection built into the contract that the Seller will do it. For a private sale this is rarely questioned. On REO's some of the banks are pushing back and making the Buyer do it.

In Delaware and PA the buyer pays for the home inspection, WDI (wood destroying insects), septic, and well inspections. My only problem is when it is my listing, sometimes the buyers' agent has incompetent inspectors. I like to get a copy of the septic plans from the health dept. in PA so that the septic inspector knows what they are looking at. I had an inspector say that 3 out of 4 outlets on a septic were blocked. I could see from the plans (which I gave the agent) that there were only 2 outlets on the system, not 4. We had to get the people who installed the system back to look at it, and it turned out nothing was blocked. And their home inspector said the well holding tank was 1/4 the size it should be. It turned out it was horizontal instead of vertical and he had no clue what 200 gallons looks like horizontally. What a klutz. Again, I had to check with the plumber who installed it who confirmed the mistake on the inspector's part. It did settle, finally.

I was once involved in a sale when the bank required that the septic be pumped and checked. The sellers took care of this expense and forwarded the septic company's "report" to the bank.

We found out later that they had cheated a bit. When the septic man was finished he told the sellers that their tank was failing and needed to be replaced. So... they wrote a note on his invoice saying the system was in fine shape.

Fortunately, the septic pumping company used pressure carbon invoices, so they had proof that they had NOT written that note.

When it went to court a couple of years later the sellers ended up paying triple damages.

Great point.  Rather than take the "cheap" way out and accept what the seller is saying, it is wise to foot the bill to get the real story and determine what the problem is and more importantly, what is the fix.  You may not always get that info from the "seller's vendor".

It is amazing that clients will balk at spending an extra $500 to $1000 on inspecting a home that costs them a lot more.  Amazing!  Yes it is the seller's responsibility, in our state, to have the septic inspected and certified.  However, it is a good practice to have the buyer and the septic company talk about possible future problems.  Missed items can be very expensive.  Same for roofs.  Do the inspections or don't cry later.

I can't believe I still have to argue this point with many of our local Realtors, but the buyer should always order and pay for inspections. 

Dear Beverly,

If clients want to live in the country, they better reassure themselves that the septic system will be able to handle their family. You do not want to have to tell your guests, that they cannot use the bathroom, because you just did some dishes.

Massachusetts REQUIRES houses have septic inspections before transfer, so simple language in the purchase contract can take care of that.

But....chimneys can be expensive, too, so set a minimum cost for chimney repair and make the seller absorb beyond that. Or not, and walk.

This issue should be discussed with the buyers before an offer is made to any seller and any other issues about inspections, fees, taxes, devices and insurance or health and safety issues.

Hi Beverly, for us it depends on whether it is an REO, short sale or normal resale.

Beverly: You bring up a good subject. It is clear, even from the reports above, that there is a great variety of laws and practices that vary in states, cities, counties, etc. The most important thing is to do your due diligence whether on the Buyer or Seller side. I always go to the city or county and check for myself (and have the buyer or seller do that as well if there are questions). I use a certified inspector whom I know to be experienced and trustworthy rather than go to some newbie or relative who isn't even licensed and just gives an opinion.  As others have said before, problems with septics, wells, termites and other aspects of a property can be very expensive to repair or cure. If the parties can't afford what may turn up, perhaps they had better go for another property. Within the existing rules, it still must be made clear who is required to pay, who is willing to pay, negotiate it all out, and get it all in writing with specific details.

Depends on what the contract states.  The standard contract in Arizona makes it very clear that it's always ultimately the Buyer's responsibility to do their "due diligence" before pulling the trigger.