Iowa’s Time of Transfer Septic
System Inspection Program
Passing Legislation to Protect Iowa’s
Waterways
MOWA Conference 2014
The Problem
Estimated 100,000 failing
systems
Many systems with no
secondary treatment
Approx. 17MGD
Approx. 500
unsewered
communities
Includes thousands of
unmaintained systems
Why Time of Sale Inspections?
Time of Transfer
inspections will
systematically eliminate
illegal septic systems
Illegal = no or failed
secondary treatment,
NOT grandfathered!
Protect home buyers,
environment and public
health
Why Time of Sale Inspections?
Best available time financially
Complaints alone don’t produce good results
Many counties (21 in Iowa in 2008) already
require time of transfer inspections
FHA, VA other lenders also require inspection
Why Time of Sale Inspections?
Existing enforcement
mechanism and authority
Groundwater Hazard
Statement (GWHS)
Blanket inspections
considered too intrusive
Legislative Process Begins
Initial efforts failed to
gain support
Sanitarians to do
inspections?
Private well inspections?
These first drafts were
opposed by some
stakeholders, 2006 –
2007 bills fail to clear
committees
Engaging the Stakeholders
Iowa Association of Realtors
Iowa Bankers Association
Iowa Bar Association
Iowa State Association of Counties
IA Environmental Health Assn.
IA Recorders Assn.
Iowa Land Title Association
Iowa Onsite Wastewater Association
Iowa Environmental Council
Stakeholder Concerns
Timeliness and
availability of inspectors
Private, state certified
inspectors proposed
Well inspections
Separated for septic
inspection bill
Stakeholder Concerns
Uniformity of inspections and process in all 99
counties!
State mandated inspection procedure
Certified inspectors
Will it hold up closing?
Inspection is required before deed transfer.
Does it have to meet today’s code?
Must have working primary and secondary treatment
Resulting Inspection Law
Senate File 261 passed in April 2008 and took
effect July 1, 2009
Requires that every building or home with a
septic system have that system inspected prior to
transfer of the deed.
County Recorder cannot record the deed or
conveyance document without proof of
inspection or binding document for inspection
Certified Inspectors
SF261 requires Time of
Transfer inspectors
certified by the IDNR
Law requires a uniform
inspection procedure and
the use of a standard
inspection form
Resulting Inspection Law
Amended by HF2437 in 2010
Removes abstracting requirement
Specifically preempts local regulation relating to time
of transfer inspections
Some county programs more restrictive
Defines transfer to exclude various deed
transfers (exemptions)
Transfers
Includes all types of
ownership transfers not
specifically exempted
Includes seller financed real
estate contracts
Includes sales, exchanges,
contracts of one, but not
more than 4 homes
Transfers Exempted
Transfer pursuant to a court order
Foreclosure or forfeiture
Transfer by trustee in bankruptcy
Transfer by eminent domain
Transfer by a fiduciary in the execution of a trust, estate or guardianship
Transfer between joint tenants
Transfers Exempted
Transfers made to a spouse or a person in the
lineal line of consanguinity
Transfer between spouses resulting from
divorce, legal separation or property settlement
Transfer of a property that will be razed or
demolished (requires legally binding proof)
Transfers Exempted
Transfers of five hundred dollars or less.
Transfers between family corporations, partnerships,
LLP’s, LLC’s, as defined in section 428A.2, subsection
15, and its stockholders partners, or members for the
purpose of transferring real property in an
incorporation or corporate dissolution or in the
organization or dissolution of a partnership, LP’s,
LLP’s, LLC’s under the laws of this state, where the
deed is given for no actual consideration other than for
shares or for debt securities of the family corporation,
partnership, LP, LLP or LLC.
Transfers Exempted
Transfers of a property with a septic system
installed within the last two years
Transfers arising from a partitioning process
Transfers from a tax sale deed by the county
treasurer
Inspection Delays
Inspections delayed by weather
Requires binding acknowledgement with county BOH to do inspection ASAP
Also responsible for any required modifications
Special Cases – Binding
Agreements
Seller knows system will
not pass
System installed within
the last 2 years
House/building will be
demolished
Inspection Criteria
Septic system with primary and secondary treatment that is not creating an environmental or public health hazard should “pass”
What ifs;
Tank or field/filter is too small
Too close to groundwater or bedrock etc.
System does not have to meet today’s code
Inspections valid for 2 years (includes new installations)
Inspection Procedures
Records search and verification
Tank lids uncovered, tank pumped and inspected
Distribution box uncovered and inspected
Verification of secondary treatment
Gauge condition of systems
Sampling discharging systems
Reporting
Reporting and Disclosure
Complete inspection worksheet
Provide written report describing the findings of
your inspection - full disclosure
Provide copies of inspection documents to;
IDNR
County Environmental Health/Sanitarian
Seller/buyer/agents
Seller must provide GWHS to buyer
Environmental Benefits
To date approx 20,000
inspections conducted
6000 systems replaced
1MGD now treated
Thousands of minor repairs
D-boxes and baffles
Environmental Benefits
Education!
Homeowner awareness
Stakeholder education
Many more involved in
wastewater decisions
Questions?
Daniel Olson, RS
Private Sewage Disposal Program
515-281-8263
www.onsiteiowa.com
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