If you’re selling or buying a Massachusetts home with a septic system, a failed Title 5 inspection can sound like a major problem. The good news is that a failed Title 5 doesn’t necessarily mean the home can’t be sold.
It does mean the septic system needs to be addressed, and it can affect the cost, timeline, financing, and negotiations involved in the sale.
What Does a Failed Title 5 Mean?
Title 5 is the Massachusetts regulation governing septic systems. When a home with a septic system is sold, an inspection is generally required to determine whether the system meets state requirements.
If the system fails, it may need to be repaired, upgraded, or replaced. Massachusetts generally requires a failed system to be brought into compliance within two years, although certain situations may require quicker action.
Can You Sell a House That Failed Title 5?
Yes, in some situations.
The seller may choose to complete the necessary work before closing, but that’s not the only possible option. In certain circumstances, a buyer can take responsibility for bringing the system into compliance after purchasing the property.
The exact solution depends on the property, local Board of Health requirements, financing, and the agreement between the buyer and seller.
Who Pays for a Failed Title 5?
It isn’t automatically the seller.
Massachusetts does not require the seller to pay for the Title 5 inspection or septic repairs simply because the property is being sold. Who ultimately pays can become part of the negotiations between the buyer and seller.
Depending on the transaction, the seller might repair the system, offer a credit or price adjustment, or the buyer may agree to take responsibility for the work.
Does Failing Mean You Need a Whole New Septic System?
Not necessarily.
Some issues may qualify for a conditional pass and can be corrected without replacing the entire system. Other failures can require more significant repairs or a complete replacement.
That’s why it’s important to understand why the system failed before assuming the worst.
What Should You Do Next?
If a septic system fails Title 5, contact the local Board of Health to understand what is required for that particular property. From there, you can get estimates from qualified septic professionals and determine the best way to move forward.
If you’re in the middle of a real estate transaction, it’s also important to involve your real estate agent, attorney, and lender early so everyone understands how the issue could affect the sale.
Buying or Selling a Home With Septic?
A failed Title 5 can add another step to a real estate transaction, but it doesn’t necessarily have to stop the sale.
If you’re thinking about buying or selling in Central Massachusetts and have questions about the process, Real Estate Exchange is here to help. Call us at 978-582-4339.
This article is for general informational purposes and is not legal, environmental, lending, or septic-system advice. Requirements can vary by property and municipality.
