08/14/2025
SEPTIC INSPECTIONS AND HOW TO PREVENT FUTURE CLOSING DELAYS!
Private septic systems are common in many parts of the Greater Richmond area. A “septic inspection” has been a vague and undefined term for the 25 years I have been practicing law. Sometimes the inspector just walked the property and other times they ran a camera down the distribution lines. This lack of continuity left buyers at the mercy of varying inspection methods, fluctuating levels of thoroughness, and sloppy reports. Unfortunately, this led to incredibly costly post-closing repairs and even replacement of the system.
The New Law
The Virginia legislature has recently stepped in to clarify what needs to be done in a septic inspection for a real estate transaction. House Bill 2671 addresses this issue by creating a clear, enforceable standard for what a septic inspection must include when it is requested by one or more parties to a real estate transaction.
Effective July 1, 2025, any septic inspection requested as part of a real estate transaction must meet the following minimum standards:
“A septic inspection shall include the location and physical inspection of all components of the system, including the septic tank, distribution boxes, treatment units, conveyance pipes, pumps, alarms, and disposal areas (including drainfields, trenches, or alternative discharge sites). The inspection shall also include confirmation of the system’s operational condition through observation, probing, dye testing, and/or camera inspection, as appropriate. The inspection report must provide findings related to the age, maintenance history, observed defects, and remaining useful life of the system.”
The days of the “drive-by” septic inspection are over. An inspector is now required to examine and report on the condition of all parts of the septic system, underground and above, using reliable testing methods to ensure functionality and safety.
Notably, the new law requires that inspections be conducted by individuals who are either:
Licensed by the Virginia Department of Professional and Occupational Regulation (DPOR) as a sewage handler or installer, or Certified as an Onsite Soil Evaluator or Onsite System Operator by the Virginia Department of Health (VDH). This ensures that the person performing the inspection has the necessary training and credentials to evaluate these complex systems accurately.
WHATS THE FALLOUT?
The purpose of the new law is to shift the septic inspection process from a gray area to a more defined and professionalized standard. Unfortunately, the unintended consequences will result in MORE gray areas than we have ever seen before. What is now considered a “malfunction”? Instead of the PASS/FAIL we have seen in the past, you are going to see terms that the septic inspectors are already trying to perfect: “Fair”, “Poor” “Functional”, and “Deteriorating” are all going to be terms that realtors are going to have to be prepared to discuss with their clients. And that will apply to several components of the system. Closing attorneys will also need to better understand the flow of the new reports.
The good news for Buyers is that they will now be able to trust that a septic inspection is more than just a quick look — it’s a comprehensive evaluation that gives real insight into the health and lifespan of their septic system.
The bad news for Buyers and Sellers is that the “3 week closing” probably won’t be possible if a septic inspection is required. If you are a Buyer’s agent, PLEASE do not waive this inspection. We have recently seen alternative septic systems that cost upwards of $35,000.00. This could get you in trouble if you haven’t properly documented a discussion with all the negative consequences of waiving an inspection for a quick closing.
The real bad news for Sellers is that the cost will go up and the likelihood of defects will rise. One suggestion I have is for the Seller to get the inspection prior to listing and make it clear in the MLS that this is the only inspection that will be provided at their expense. The Buyer can elect to get a secondary inspection if they choose, but hopefully the inspector can use the prior inspection as a road-map that expedites further work.
In our area, the standard contract has changed some to adapt to these changes. The timeframe for the inspection has increased to 90 days prior to closing (presumably to give the Sellers the chance to get the inspection prior to ratification). Realtors should be aware the new default damages limit on septic, well and termite related inspection items is now $2,500 (not including the cost of the inspection). This is a significant increase that the Seller should be aware of before signing any contract.
This legislation is a response to years of inconsistent practices across Virginia. Like most legislation, there will be parts of this that were never considered that will lead to failed expectations and delays in our industry. To stay ahead of this, realtors need to get a better understanding of what goes into an inspection, a basic grasp of the components of a septic system, and a willingness to discuss the ramifications of a “dirty” inspection with their clients. A solid referral will be more important than ever.
As time goes by, the industry will develop standards in how these new inspections can affect the transaction and it will be important to recognize these trends, so the closing attorneys and realtors have a similar grasp of what is required to best protect and advocate for their client.
