Collapsed Septic on Vacant Land: Should You Mark ‘Yes’ & Include OREF 081?

Q: I am working with a buyer preparing to write an offer on a piece of bare land. The seller’s agent has told me there is an old septic system on the property that has collapsed and no longer functions. In Section 13 of OREF 008 – Vacant Land Real Estate Sale Agreement, for the question asking if there is an existing septic/onsite sewage system, should I mark yes and include OREF 081 – Septic/Onsite Sewage Addendum?

A: Yes and no. In Section 3 of OREF 081 – Septic/Onsite Sewage Addendum, the seller represents the system is operating properly. In the circumstances you’ve described, this would be inaccurate, so the seller would likely be unwilling to sign. Additionally, the purpose of the addendum is to allow for certain tests and inspections of the system, which would be unnecessary for a non-functioning system. Finally, there is a point of information in Section 2(d) informing the parties that the DEQ may require decommissioning of any abandoned system. Best practice in this situation would be to mark Section 13 “Yes,” but in Section 22 (Additional Provisions) or in OREF 002 – Addendum to Sale Agreement indicate that no OREF 081 will be provided because the system is non-functioning. Also consider requiring the seller to disclose the location of the non-functioning system, and a contingency for decommissioning the system in accordance with DEQ requirements.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.