Unsure if this is best place to post.
House in New Jersey was put on market, 3br, 2 bath, etc. Buyer put bid and had inspection done. Turns out the septic tank inspection shows the leech field only suitable for a 2 BR, NOT a 3 BR based on NJ specs. Because of this, we had to go down $20k in price to cover costs. We also had to sell as we had to relocate, we had no choice.
We dug up septic inspection paperwork from when we bought house, found in there same info, leech field is specced for 2 BR house.
So the question is - We paid lawyers and real estate agents to ensure this kind of thing would not happen and it did..whos responsible?

You are. The seller.

It is NOT the agent, lawyer or buyers fault that there was issues with the septic tank. Since YOU knew about the septic/leech field when YOU bought it, it SHOULD have been DISCLOSED when you listed the property in the first place.

Chalk it up to a life lesson.

Not sure about rules in NJ, but in CA we have a little term called 'material facts or defects'. The seller is obligated to disclose any that are KNOWN. It sounds like you knew about that one. Your agent and lawyer etc can only help you as much as you let them. They are not mind-readers. If they weren't aware of the problem to begin with they could not have advised you that a problem could arise.
Bottom line- your fault. There is a term we like here in CA (and in other states I'm sure)- WHEN IN DOUBT, DISCLOSE!

This bit of info was not disclosed as KNOWN at the time we put it on the market because we simply did not know about it. It was assumed by us that we paid interested parties to review such information after all inspections were complete, and clearly it was not. We assumed the lawyers and agents involved would indeed pour over all inspection results.
It seems to be a prevailing thought along all lines that yes, its a life lesson we have learned, but alas, why pay those whose job it is to prevent such stuff from happening.
I will be diligent in all future affairs and I go back to assuming such parties involved in real estate are not to be trusted to make sure they provide the services we paid for.

"I will be diligent in all future affairs and I go back to assuming such parties involved in real estate are not to be trusted to make sure they provide the services we paid for."

That's good, however, you'll see if you check your contract, that due diligence, or hiring a specialist for a septic inspection, is not part of the agents or attorneys contractual duties.

But you said:



And you know, for a FACT, it is a 3 BR home.



Sure the agent will look at the results of TODAYS inspection. Looks like your septic is not up to code. Do you want to sell the home? Then you pay a concession so the buyer can live in it. Don't hate the player, hate the game.

I know you are upset but passing the blame will not fix the problem. You knew your septic was rated for 2br when YOU bought it. You should have had that addressed when you bought it back in the day and had the previous owner pay to address the issue.

Do not assume your real estate agent is a plumber, contractor, pest inspector or hvac expert. It is not the agents job to make sure all codes are up to par. You employ them to market and sell your home, not to give opinions of the state of your septic system.

?????Did I miss something here? In your first post you say you found the information from when you bought the house and then you say you didn't know about it??? You had the information. Why try to blame your lack of due diligence on someone else?

Sorry about your situation.

You did indeed know. I can see your point about such a blatant error. I probably would have spotted that when you bought and asked how you wanted to handle it but that is me. Due diligence is the responsibility of the buyer. You may want to review all your paperwork and see if there are any survivable seller warranties. Chances are there are none.

You can always try to sue the agent and lawyer but whether you win or not will be determined by your documentation. Again, chances are your purchase contract said in bold letters that the buyer(you) are responsible for due diligence.

Good Luck!

Just to clarify our knowledge.
When we put house on market, we did not know the septic was not 'to code'. It wasnt until the buyers gave their report and then we reviewed the report from when we bought that we then saw the trouble. At that point, understandably its too late. No matter what we did, it would then have to be disclosed no matter how it was packaged.

Done deal, its over and done, c'est la vie..

If I can ask 1 question - As a real estate agent or real estate lawyer, would you not want to know the results of all inspections?

Sigh....your 'old' inspection when you first bought the home said septic was rated for TWO bedrooms. You bought a THREE bedroom.....red flag.... Please do not blame today's agent or lawyer as they had no control over it in the past.



Oh yes. Any negative results will most likely become a concession, thereby lowering the price of the home with 'issues' that need to be resolved, be it a mortgage requirement or livability situation. For example: My buyers inspection shows knob and tube wiring. The bank says homes must have 100 amp breakers or more. Cost to cure is $5000. I suggest to the buyer to counter with a $5000 concession, to be put in an escrow account, to address this unpassable issue. Home sells, everyone is happy.

One good point, if it only cost you $20k, you should not feel too bad. I have seen prices for septic/sand mounds range from $30-$40k in my area. Plus you actually SOLD you home in todays crappy market.

Good luck.

I agree with you 100% jstip, in todays market, we are grateful we sold.

btw..it was the same lawyers and agent we used to buy the house that we used to sell...

So, in a nutshell, you are upset because you are assuming that the attorney and the agent should review the inspection and explain it to you? Why would they? Are you not able to understand an inspection report without help? If that is the case you should go over it with the inspector!!!! That is what you paid him for!

I'm sorry but most contracts have large paragraphs where they explain that agents are not experts on construction or things like septic systems. That is why you hire an inspector. If you want to sue someone sue the inspector, but you probably signed something with him that limits damages to the price of the inspection.

I actually go over the inspection with my clients because I specialize in "over the top" service. But it's really not my job and many people think I am foolish because I open myself to liability by dabbling in areas that I am not an expert. I am not an inspector.

Well in a nuthsell, yes. We hired attorneys and agents to explain it all too us, thats what we paid for. Their services were acquired to help us thru the process, we arent attorneys or real estate agents. I dont expect them to be inspectors, I expect them to review all the facts given and assist in the next steps.
Yes I am 'stupid' in these areas, so life gives us those who we hire to assist.
Ive learned alot and will keep on learning.

You are not stupid. You are just not up to your armpits in this stuff everyday, which is a good thing...

One question I forgot to ask. When you first bought your home, was it a 2 bedroom? Did you add on or change the floor plan to a 3 bedroom, not knowing the codes? If you did the changes, did you pull permits letting you legally change the home? Ok, that was more than one question.

"I dont expect them to be inspectors, I expect them to review all the facts given and assist in the next steps."

I think you misunderstood the scope of what area of expertise an agent/broker has in a real estate transaction.

As stated before that is outside an agents area of expertise.

Just chalk it up to experience and move on.

I have seen sellers eat much bigger crowe than this on deals before.

no legal advice

Very Interesting: romazco is upset cause his favorite realtor sold his house for 20k less than he thought he was selling it for due to defects. He did not have to accept the deal; he could have said no. Instead he took the deal and now wants remedies from someone. I don't think he cares who. We all want remedies and unfortunately the system listens.
Look at my 2 fellow Ga brokers who became septic experts; like I would know a septic issue if it bit me in butt. We in Ga. are all reminded too often of super agents who are whatever they need to be. Come on folks, tell the man that agents know nothing. I never will look at an old inspection and pass judgement. I will look at each issue on the new one and find a value for the unforseen defect and ask my client to either remedy it or give a credit. Is that how it is done, or am I going to have to become a septic expert to compete for business.

Some of the responses here seem a bit harsh. I don't think the OP is out of line to ask this question. If I understand it correctly, he is upset because when he sold his house, he had to make a concession due to a problem with the septic system (obviously someone pointed this problem out to the new buyer). It seems normal to me that he would want to know why nobody pointed this problem out to him when he bought the house. I don't know the procedures in NJ, but I am not present for most of my buyer's inspections. After the inspection, I get a copy and go over it with my buyers. If your inspection showed the the septic system was not up to code, I am surprised the inspector didn't point that out to you and I am also surprised that your agent didn't notice it in the inspection report. Did you read over the inspection report when you bought the house? Were you there during the inspections? Did the inspector say anything about the system?

just curious, where did you get the idea that RE agents and lawyers "ensure" or "insure" that these things will not happen, especially considering that you had not provided the old inspection report to them in advance? how can anyone ensure that the consequences of a historical event will not happen, short of intentionally concealing knowledge of the event?

irrespective of their duties, what difference would it have made if a RE agent or lawyer had discovered this fact before the buyer's inspector did? would it have avoided or mitigated a potential loss in value due to the code violation? would the buyer not have insisted on a lower price? the septic issue is a FACT, and there's no changing it, unless you have access to a time machine.

Sorry for your situation. It would seem however that someone would have and possibly should have caught this error prior to your going to settlement on the property when you purchased it.

I am sure it must have been looked at by several people along the way. In the end the responsibility falls on you, despite the fee's paid to the settlement attorney and others.
Sorry you had to go through this.

Are you trying to be an inspector by saying "Hey, this issue on the inspection report may need some further investigation...?"

I feel bad that nobody said to the OP when purchasing the house "Hey, this septic needs to be addressed..."

While it's not my job to interpret an inspection report, I do think it's my job to point out something they should investigate further...

BUT THAT SAID - I think it's extremely foolish to do something like buy a house without reading everything over. When we bought our house my husband would not sign one single thing until we completely understood all the implications, conditions...