Sales Contracts and Septic Tanks
26th July 2023
When the septic tank is found to be non-compliant.
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Sales Contracts and Septic Tanks
26th July 2023
When the septic tank is found to be non-compliant.
Septic tank systems are a frequent source of dispute in property sale transactions.
As part of the sale process the system must be inspected and a report on its condition provided to the buyer. Very many do not comply with minimum legal standards.
Normally the statutory report will be available before the initial sale and purchase contract (compromis de vente) has been signed, although this often occurs after the sale price has been agreed.
When this happens seller and buyer may agree to reduce the purchase price, or the buyer may simply take it on the chin. Alternatively, they may withdraw before signing the contract.
The law states that where the septic tank does not conform, the new owner is required to bring the system up to standard within a year. The cost of such works will vary by size of property and ground conditions, but there is unlikely to be much change from €15,000.
In practice, there is no financial penalty for an owner who does not carry out the work, and most councils do not take a draconian approach, unless there is a significant public health problem.
Nevertheless, since 2021 notaires have been required to inform the local water and sewerage body of a change in property ownership in order that they can act more quickly, so this could result in stronger enforcement action being taken.
In a case recently considered in the French courts, the seller and purchaser signed a contract for the sale of a house for €108,000.
In a somewhat ambiguously drafted clause, the contract stated that sale completion was subject to the sewerage system being compliant - "que la maison soit reliée conformément aux assainissements."
The contract was drawn up by the estate agent, not through a notaire and was signed prior to the septic tank inspection being carried out.
Several weeks before the scheduled completion the statutory report showed that the system did not meet current standards.
As a result, under an agreed revised contract the seller agreed to get the property connected to the mains drainage system.
It was also agreed that sale completion would be delayed until after the works had been carried out, within the next two months.
Subsequently, and prior to the works being completed, the buyer decided to withdraw from the sale, as a result of which the seller brought an action for damages.
In the local tribunal the judge found in favour of the seller, stating that as the 10-day cooling off period under the contract had expired, and as the agreement for works to be undertaken did not provide for an additional period of retraction, the buyer had no grounds on which to withdraw.
The buyer successfully appealed the ruling, with the court stating that the requirement for the drainage system to conform was a conditional clause in the contract, and that as the works had yet to be carried out the buyer was entitled to withdraw.
In effect, the condition of the sewerage system suspended the obligations of the buyer until the works had been completed.