House failed septic inspection? What happens next

What happens if a house fails a septic inspection?

A failed septic inspection doesn't end the deal by itself. It is a finding to price: you can ask for a repair, a credit or a lower price, or cancel if your contract allows. First, have a septic system service provider name the part that failed and put the fix in a written bid. HomeAdvisor puts the average septic tank repair at $627 to $3,043, while Fixr puts a new drain field as high as $20,000.

Key takeaways

• The Environmental Protection Agency (EPA) says to start planning an upgrade once a system passes 25 to 30 years, so on an older system get the replacement priced too.
• On a Federal Housing Administration (FHA) loan, visible septic problems mean the appraiser must require a repair or further inspection.
• Fixr puts a replacement at two to five days of work once it starts, so book the provider the day the report arrives.

What makes a septic system fail inspection?

A septic system usually fails because of poor design or poor maintenance, according to EPA. Skipped maintenance can let solids move into the drain field and clog it. Some systems sit on poor soil, steep slopes or high groundwater, which EPA says can cause hydraulic failures and contaminate nearby water.

The inspector checks the tank, the field and the paperwork. EPA's homebuyer guide lists what they look for, including:

• Low water in the tank, a sign of a leak
• Staining above the outlet pipe, a sign of backup
• Standing water over the drain field, a sign of failure
• A distribution box that sends uneven flow to the drain lines
• Pumping records and the system's age

Age matters. EPA puts the average system's life at 15 to 40 years. Its septic FAQ says to start planning an upgrade once a system passes 25 to 30 years, "before you are in an emergency situation." If the system has a pump, many pumps and controls need replacing every 10 to 20 years.

Can you live in a house with a failed septic system?

Whether you can live there with a failed system is a local call, not a federal rule. EPA does not regulate home septic systems. In most states, EPA says, "local health departments issue construction and operating permits" under state law. Your county or state health department answers for your address.

The hazard is the sewage itself. EPA calls sewage surfacing from a failed drain field "a direct public health hazard" to anyone exposed. If sewage backs up into the house, stop using the drains and toilets. EPA says to "avoid contact with the sewage as it may contain harmful pathogens" and to call your local health department. Then have a septic system service provider look at it, and keep children and pets off wet ground over the field.

How much does it cost to fix a failed septic system?

Price the part that failed, not the whole system. A pump and a new drain field are different jobs, so match your bid to the right row.

Here is one drain field case in dollars. HomeAdvisor puts a drain field replacement at around $7,000 and a building permit for a septic install at $450 to $2,300. That makes $7,450 to $9,300 before any tank work. If the seller offers a $5,000 credit, you would cover $2,450 to $4,300 yourself.

Kept prices every line of an inspection report for $79, usually under 4 hours, and marks the ones that need a professional's quote. The rest of your list gets priced while you wait on the septic bid.

Who can tell you the fix before your deadline?

A septic system service provider diagnoses the failure and bids the fix. For a malfunction, EPA points you to a local septic system service provider or your local health department. Ask the provider for a written scope: which part failed, repair or replace, and the price.

HomeAdvisor puts a standard inspection visit at $100 to $200, or $250 to $1,175 if a camera has to go down the lines. A repair or replacement permit comes from your local health or environmental department, and EPA notes the contractor can apply for it for you. Fixr puts a replacement at two to five days of work, longer with tree roots, wet weather or a hard-to-reach site.

How to get repair estimates during the inspection period covers getting a figure inside a short window.

What should you ask the seller for?

Ask for the fix that matches the written bid, permit included.

• A repair before closing if your loan needs it. On an FHA loan, the appraiser checks the septic system for signs of failure. If there are "readily observable deficiencies," HUD's Handbook 4000.1 says "the Appraiser must require repair or further inspection." Ask for the paid invoice and the permit before you close.
• A credit or lower price if you want to pick the contractor and control the work. Use the full bid, not a round number.

What to ask for after a home inspection covers how this line sits next to the rest of your list. The buyer repair request letter template gives you the wording.

What if the seller won't fix it?

If the seller won't fix it, you have three choices: pay for it yourself, take a partial credit, or cancel. Your contract sets the deadline, whether you can cancel and whether your earnest money comes back, so confirm with your agent or attorney. A priced repair is a known cost you can absorb or split. A full replacement on an old system is where the numbers climb, up to $35,000 in one local range from Suffolk County, NY.

If the bid is still open-ended, or the provider can't say what failed, when to walk away after a home inspection walks through the call.

Will homeowners insurance cover a failed septic system?

Homeowners insurance usually won't cover a septic system that failed from neglect or skipped maintenance, according to Progressive. Ask your own insurance agent before closing what the policy you are buying covers. Progressive notes that dwelling coverage "may cover damage to your septic system if it's caused by a sudden and accidental event."

How long is a septic inspection good for?

How long a septic inspection stays good is up to whoever required it. EPA says many states require one "with the transfer of real estate," and a local or state government or your lender may require one too. Ask them how recent the report has to be.

How do I know what the rest of my report is worth?

Price every line, not just the septic one. Then add each line's figure to one request.

Waiting on a septic bid? Upload your inspection report to Kept and have the rest of your repair list priced before your deadline.

Sources

• EPA, New Homebuyer's Guide to Septic Systems
• EPA, Resolving Septic System Malfunctions
• EPA, Frequent Questions on Septic Systems
• HUD Handbook 4000.1
• HomeAdvisor, septic tank repair cost
• HomeAdvisor, septic system cost
• Fixr, septic tank repair cost
• Antorino & Sons, septic replacement vs. repair in Suffolk County, NY
• Progressive, insurance for sewer lines