Understanding Massachusetts Title V Approval
Is it possible when buying a Massachusetts home, the Title V inspection report you receive as evidence that it has passed is invalid? YES, it is!
When selling a home in Massachusetts, one of the requirements of every homeowner is to perform what is known as a Title 5 septic system inspection. Title V is a fancy term for an inspection of your septic system.
You will also see it used called as a number as well – hence Title 5. Some companies specialize in septic inspections and are hired when a seller is going to sell their home.
Title V regulations were created in 1995 by the Massachusetts Department of Environmental Protection (MassDEP) to protect waterways and the environment. Septic system inspections are a vital part of these regulations.
Every city’s Board of Health oversees Title V. They record a home’s as-built septic plans and the inspection results. This document provides information on the condition of the septic system and its capacity.
Most assume it’s approved when the Title V inspector visits a property and gives it a thumbs up. Unfortunately, that is not the case!
It is crucial for buyers and sellers to understand that a Title V is not fully approved until the local health board gives it a stamp of approval.
As you are about to find out, it is possible you may not have an approved septic system. Mortgage lenders may also be in the precarious position of lending on a house without a passing septic system.
Let’s look at the inspection process from start to finish.
A Passing Title V Inspection is Mandatory to Get a Mortgage
For a buyer to get a loan on a home, they need to have a passing Title V. In the event of a failed septic system, some lenders will allow you to set aside funds to be put in escrow to cover the replacement cost. The funds will remain in escrow until the system is installed and the local BOH approves the new septic system.
However, most lenders will ask for one and a half times the cost to be set aside. This is for their protection if costs are higher than expected.
So, for example, let’s say the cost of replacing the septic system will cost $20,000. Most lenders will require $30,000 to be placed in escrow.
Lenders need more than one estimate to feel comfortable that the amount placed in escrow is appropriate.
The Title V Passing Certificate
When a Title V inspection is done, one of the things that will happen upon completion of the review is a report generated that will detail the entire system. This report will also detail whether the system passes or fails.
A failed system requires a replacement, which, more often than not, will be a costly proposition. It is also possible to have a “conditional pass.” Conditionally passing means some part of the system needs a minor repair.
For example, the inspector often finds something like a septic tank crack.
A minor issue would not be an automatic failure because a crack in a tank can be easily repaired. Even if a replacement of the entire tank was necessary, it could still be a conditional pass. Replacement is easy.
Leachfield Failure is Expensive
When you see a Title V failure, the leach field is not doing its job. If the leach field is no longer draining correctly, you are almost always looking at a leach field replacement. This is where the big money comes in. You typically must excavate and replace all the old soils with new ones.
You will require an engineer to redesign the system to meet current standards for today’s septic systems.
Getting an approved Title V inspection is a big hurdle for a seller in the home sale process. When you receive the certificate, everyone is happy. The seller, buyer, lender, attorneys, and real estate agents involved in the sale can feel at ease.
This is what happens throughout the state of Massachusetts every week when homes are sold. The Title V is passed around, and everybody is happy when they see that checked box by the Title V inspector that says “APPROVED.”
Local Board of Health Approval is Needed
What if I told you it is not approved when you receive a Title V from an inspector? This is the case because, in Massachusetts, local health boards have the final stamp of approval on whether or not the inspection is a pass!
I have been involved in two transactions where a passing Title V was given out by a licensed inspector when, after the fact, it was rejected by the local health board!!
On one of these occasions, it was not discovered until years later, AFTER the property had closed. Here is what happened in this sale.
I listed a home whereby the owner had bought the house and received a passing Title V at closing. The deal happened to take place over five years ago.
Upon putting the house up for sale, I informed him of the need to get a Title V. He contracted with a Title V inspector who visited the local board of health to pull information on the system as inspectors often do when completing a Title V inspection.
The Septic System Wasn’t Passed
After opening the file, it was discovered that the previous Title V was not considered a valid Title V. The board of health agents declared that the water table in the area of the system was too high.
The Title V was considered a FAIL and not a PASS!! Much to my seller’s surprise, he was in a significant quandary.
When he had gone to closing on his home, he was told via a very official looking document (passing Title v report) that he had no worries and his system was great.
This was not the case! I am sure all sorts of legal questions enter your mind. Why did the board, health agent, or inspector who passed the septic system never inform the seller after the fact that they did not have a passing Title V?
It’s certainly a big issue and legally something the seller could pursue.
Thankfully, Public Sewer Was Available
Luckily, the seller could tie into the public sewer and perform under the terms of his contract with the buyer. This very quickly could have been a case where that was not possible. The seller would have been shelling out tens of thousands of dollars from his pocket due to an enormous negligence case.
In this particular instance, the Title V inspector never turned the paperwork into the town until the closing had initially occurred. The board of health agents, after rejecting the inspector’s report, never informed the owner of the property that they were not accepting the report.
The seller could have a case against the inspector and the board of health agents for negligent behavior.
So, the most significant thing you need to take out of reading this is that the septic inspector does not approve a passing Title V. The local board of health does. Without BOH approval, you do NOT have a valid Title V.
What is fascinating is that other Massachusetts homes may have received approval from the inspector when the town has said no siree!
Another Example of a Title V Not Legally Approved
In another transaction, I represented a seller completing an Ashland, Massachusetts, short sale. They also received a Title V document from their inspector saying the Title V had passed.
No such luck, though, as the board of health inspectors rejected it. They said they did not like the washing machine drained into a dry well on the property.
According to the Title V inspector, this particular board of health agent was the only one in the state he had encountered having such a requirement. Luckily, the home had sewer in the street again, and the buyer agreed to hook it up.
Imagine what would have happened if no sewer tie-in was available in both circumstances. The only word that comes to mind is a lawsuit!
Buyers and sellers of Massachusetts Real Estate need to be aware that the local board of health wields a lot of power. They can throw a kibosh into your real estate transaction.
Keep Your Septic System Maintained Moving Forward
One of the essential things you need to do as a homeowner is maintain your septic system. With proper maintenance, you will likely extend its life.
Maintaining a septic system is crucial for several reasons. It ensures the efficient functioning of the system. Regular maintenance prevents blockages and backups. This keeps your home environment safe and sanitary. Neglecting it can lead to unpleasant odors and health hazards.
Regular maintenance saves money in the long run. Addressing minor issues early prevents costly repairs or replacements. The system’s lifespan extends, offering better value for your investment. You should plan on pumping your septic tank every three to five years.
Pumping a septic tank is cheap in the grand scheme of homeownership. The cost is very reasonable for what it prevents.
Lastly, it protects the environment. A well-maintained septic system prevents the leakage of harmful substances into the soil and waterways. This safeguards local ecosystems and promotes cleaner, healthier communities.
In summary, regular upkeep of your septic system is essential. It guarantees smooth operation, saves money, and conserves the environment. For homeowners, it’s a responsible and necessary practice.
Remember, septic replacement is a significant expense!
Conclusion
Call the local health board to double-check to ensure your Title V has been fully approved! Before heading to the closing, you should confirm that the septic inspection did pass.
Without checking, you could find out later that it’s not approved. Discovering this after the fact would be a legal bee’s nest. It could cost you tens of thousands of dollars out of your pocket.
Your only relief could be a lawsuit that would cost even more money. I advise having your buyer’s agent call the local health board or yourself.
You could save yourself a ton of money and aggregation!
Other Resources Regarding Massachusetts Title 5:
- All about Massachusetts Title 5 Septic systems provided by Mass.Gov.
- Massachusetts laws concerning Title 5 via The Massachusetts Trial Court Law Libraries.
Use the resources to understand better how Massachusetts Title 5 works and why having approval is so important in a real estate transaction.
About the Author: Bill Gassett, a nationally recognized leader in his field, provided information on when a Massachusetts Title V septic inspection is not approved. He is an expert in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications he has been featured in. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 38+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
