Expert: Russel Ray - 8/8/2007

Question
QUESTION: We recently purchased our first home (2months ago).  The MlS sheet and all sellers disclosure both state that the home has public sewer and water.  After receiving our first bill we realized we were not charged for sewer. We contacted the utility department only to find out we are not on city sewer, and it is not available. If we had known this we would not have purchased this home, or at least had the septic system inspected, and pumped.  What if anything, can we do about this?

ANSWER: Hey, Kareston.

Different states have different rules for what you are experiencing. In most states, you would have a good case against the seller and possibly the listing agent as well. The difference between public sewer and septic system is not insignificant. If I were in your situation, I would contact a good real estate attorney.

Many states also require that septic system clearance before a property can be sold, so the fact that such did not happen can also weigh in your favor, again depending on what state you are in.

However, septic systems are much easier to maintain today than they were when I was building/installing them 30 years ago in Texas and Louisiana. That doesn't excuse the lack of disclosure and the lack of a proper inspection, though.

If you want to follow up with what state you are in, I might be able to help you some more.

---------- FOLLOW-UP ----------

QUESTION: How do the laws apply in Tennessee?

Answer
Hey, Kareston.

Tennessee apparently has a pretty well-defined disclosure form, and while the disclosure form the State provides doesn't have to be used, everything that is on the State's disclosure form has to be on whatever disclosure form is used. You can find the requirements here: http://state.tn.us/commerce/boards/trec/rulesandlaws.html/66/66-5-210.htm

Some Tennessee friends indicate that a new septic system law was recently passed, and they are trying to find it for me. Notwithstanding that, though, it appears that you do, indeed, have a case for misrepresentation or negligence against the seller and/or listing agent. Consequently, I'll say again that if I were in your situation, I would contact a good real estate attorney. He'll also know about the most recent legislation and have access to it.

Also, different cities and counties can have different requirements. I do have a lot of resources in Tennessee, so if you want to disclose your city, I can probably get you even more information.