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Sales and transfers of properties with septic systems
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The seller's responsibilities
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Before closing, the seller must record a Notice of On-site Sewage System Operation and Maintenance Requirements (OSSM)* at the King County Office of Records and Elections. This is a document that acknowledges the property is served by a septic system and describes the owner's responsibilities for maintaining the system. The seller gives a copy of the recorded OSSM to the buyer prior to closing. A declaration of receipt of the recorded OSSM should be signed by the seller and buyer for their records (King County does not need a copy of this declaration of receipt).
*OSSM is also known as Form 22U by the Northwest Multiple Listing Service
NOTE: A septic system is also referred to as an "on-site sewage system" in official documents, forms and applications. The following downloads are formatted in Adobe PDF format:
The buyer's responsibilities
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At the time of sale or property transfer, the buyer submits to Public Health the required Operation and Maintenance Program fee ($40) and a copy of the recorded On-site Sewage System Operation and Maintenance Requirements (provided by the seller prior to closing as described in the previous section.) The buyer will receive:
- Septic System Care Kit
- the opportunity to attend a workshop about their septic system
- reminder postcards for regular monitoring visits by licensed professionals, and
- periodic educational mailings
See also:
Operation check or "Health Letter"
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When purchasing property, your lender may require the septic system that serves the property to be inspected (Public Health – Seattle & King County does not require inspections as a condition of selling or buying a property served by a septic system). Lending institutions have, over the years, established their own guidelines regarding which septic system professionals are acceptable for issuing septic inspection reports for property transactions. A possible qualified septic professional in King County can be a certified On-site System Maintainer or you can request a Public Health sanitarian to perform the inspection. You must fill out the Application for Report on Individual Sewage Disposal and Water System and submit the application to the Eastgate Public Health Center, 14350 SE Eastgate Way, Bellevue, WA, 98007, 206-296-4932 or (800) 325-6165 ext. 6-4932.
Always ask your lending institution who they approve before hiring someone.
FHA or VA loan requirements
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Federal Housing Administration (FHA) loan:
Lending institutions have the responsibility to determine who is of 'due diligence' or 'qualified' to perform an inspection.
Background:
In 1996, the U.S. Department of Housing and Urban Development's (HUD) Circular Letter 96-01SF was issued by the HUD Seattle Office. It stated:
"On-site Well and Septic Inspections. FHA's policy of requiring the local Health Authority's approval of the well and septic systems has been revised. Now, FHA will accept on-site inspections performed by either the local health authority or "state licensed engineers." In the State of Washington, "state licensed engineers" included State licensed sanitarians, and county approved well drillers and septic system designers. Licensed sanitarians are qualified to inspect both private well and septic systems, while the "approved" well drillers may inspect only wells and septic designers may inspect only septic systems." (January 26, 1996, page 10)
In 1997, the HUD Home Ownership Center issued a new policy guidance document stating that it is the lender's responsibility to ensure the OSS are permitted/approved and "adequate to service the property." You can find the document on HUD FHA's website.
While the current policy does not list qualified individuals, the past Circular Letter 96-01SF noted above is used as guidance by the lending institutions.
For more information, contact the HUD's Processing and Underwriting Division in the Home Ownership Center toll free at 888-827-5605.
Veteran Administration (VA) loan:
VA loans allow only local health department sanitarians to perform an inspection, if requested by the appraiser.
Background:
In 2001, Circular 26-01-5, "Local" Requirements for VA Notices of Value was issued by the U.S. Department of Veterans Affairs. It states:
"Every Washington State property with an individual sewage disposal system requires evidence from the local health authority (or other source authorized by VA) that the system is acceptable." (June 20, 2001, page 9)
No other source has been authorized by the VA for Washington State.
For more information, contact the VA's Washington Regional Office at 206-220-6163.
You can find the Circular 26-01-5 on the Department of Veterans Affairs website. Click on 'Circular 26-01-5 – June 20, 2001.'
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