Hi,

I don't think the bank has to fix anything. Usually in their contracts they have the right to cancel and their addendums a very slanted towards their benefit. BUT.....If the bank doesn't work with you on this and you walk, I would sincerely hope that they would have to disclose the issue to the next potential buyer. Why would they get a better price frrom the next guy.

Back several years ago a bank was informed of a past sink-hole issue and didn't disclose to a purchaser. She found out --- and a lawsuit followed against the bank and the listing agent. So I think the bank really hasn't a better choice. The have a ready and willing buyer (you) and can readily fix the septic and close.

Hope for the best.

Barbara

This wouldn't happen to be in Harborcreek, would it?
If so I have run into a similar situation and have some information on possible public sewer being installed in certain areas.
If the bank dosen't pay for the septic to be repaired in full then I would walk from the deal. Unless they offer one heck of a discount, and you have information that would allow you to ensure the problem can be remedied for less than the discount they offer you.
If they don't fix the situation, then I bet 100 to 1 that you can walk away from the contract, and ge your entire deposit back.
Rick

Lynne,
It depends, (as PAR's council likes to say.) Your choice of cure is chosen in the inspection section of the sales purchase agreement. Usually the seller can back out if the cure is too costly, or agree to sell without cure, or some agreed partial $$ remedy. You normally can walk if the seller won't provide an exceptable cure.
The seller could not occupy the property if the muncipality finds the septic is not functioning acceptably. The home may be able to avoid the cure if not in use. Any attempt to resell the property would be expected to include full disclosure about the current condition of the septic. The SEO for that locale might force an immediate cure if the septic is failing such that the neighbors are endangered.