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Buying or Selling a Home/Septic Disclosure/Location

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Question
We purchased our home in Kingsport, TN in 2006.  We are now in a lease to purchase agreement with a buyer and hope to close this summer.  However, it has been brought to our attention that the location of the septic tank may technically be illegal.  About 30 or so years ago renovations were made to the home and the car port was turned into a family room.  The former septic tank, without our knowledge, was about 25% under the slab of this former car port and is now technically under the living space.  In addition, the septic tank may be too small for the home regarding present day standards.  When we originally purchased the home, the tank location and size was not disclosed and until we began renting the home, and we were never aware of any existing problems until the renters/buyers began occupying the space.  First, is the fact that the location and size of the tank was never disclosed by the former owners against any real estate laws and are we protected as the buyers/owners.  Also, since the renovations of this former car port were done in the 70's (or there about) would the tank location and size be "granfathered" in.  Lastly, we have renegotiated the price of the home and contract with the buyers/renters and have taken $10,000 off the price of the house with the agreement that the new buyer intends on fixing the septic system once he owns the house.  He is purchasing it in "as is" condition as well.  Can the buyer now turn around and further negotiate the purchase price because of issues that are now fully known about the septic the the existing issues were never disclosed to us in the first place?  In addition, if the buyer backs out of the deal, are we able to still sell the property as is if we disclose the septic issue or is the house "condemned" due to the tank location despite the age of the renovations?

THANK YOU SO MUCH FOR YOUR HELP!!

Answer

Hi RECHELLE--

None of us "Out-of-Town EXPERTS can answer the "hodge-podge" of questions you're posing here!
You've got a mixture of questions on a variety of "connected:" subjects,some covered by Federal and/or State Law, others by County or Community Building or Zoning Codes,such as "Grandfathering" of non-compliant construction, misplacement of and/or inadequate sanitary facilities, negotiations between Buyers & Sellers,etc, etc, etc!

Every State, County and/or Municiplity --including Kingsport TN--has it's own rules and regulations. You need an Attorney from the Kingsport area to hel;p you sort ths out and give you legal opinion, advice and guidance. If you can't afford a Lawyer, contact the closest Legal Aid Society OR the nearest Office of the State Bar Association. Either of these organizations may find you an Attorney who will work "Pro Bono" (Free) for you.

Sorry we can't help you further than to a Lawyer, but that's what you need! GOOD LUCK!

--JIM  

Buying or Selling a Home

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Jim Root

Expertise

How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!

Experience

Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!

Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).

Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.

Education/Credentials
Associate Degree in Real Estate Studies plus: Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years. Bachelors Degree in Mass Communications, Masters Degree in Education/Teaching

Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.

Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!

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