Can house be sold in NJ if the guest house has a cesspool? (sale)

[Dirktuck]

In contract on a house- inspection turned up 3 cesspools- 2 serving the 3-bedroom main house and one servicing the 1 bedroom 1 bath guest house. Seller says they will only replace the with a 3-bedroom septic for the main house and new septic for the guest house will be at our expense. They claim the law excludes “outbuildings” and they can legally sell with a cesspool serving the second house on the property. Is this true?

[Retriever]

Originally Posted by Dirktuck

In contract on a house... They claim the law excludes “outbuildings” and they can legally sell with a cesspool serving the second house on the property. Is this true?

If you are at the contract stage, you should have already retained an attorney.
Rather than trusting the opinions of random strangers--with unknown legal credentials--on the internet, wouldn't this be a question to pose to your attorney?

[FireStation46]

Originally Posted by Retriever

If you are at the contract stage, you should have already retained an attorney.
Rather than trusting the opinions of random strangers--with unknown legal credentials--on the internet, wouldn't this be a question to pose to your attorney?

[Swamp_Yankee]

Originally Posted by Dirktuck

In contract on a house- inspection turned up 3 cesspools- 2 serving the 3-bedroom main house and one servicing the 1 bedroom 1 bath guest house. Seller says they will only replace the with a 3-bedroom septic for the main house and new septic for the guest house will be at our expense. They claim the law excludes “outbuildings” and they can legally sell with a cesspool serving the second house on the property. Is this true?

Nope. Properties with functioning cesspools (there is no distinction made between main house/guest house) can only be transferred under very specific circumstances as provided for in N.J.A.C.7:9A-3.16(a) et seq:

(c) A cesspool that is not malfunctioning may continue to serve the structure after a real property transfer only in
the following circumstances:
1. A conveyance for a consideration of less than $100.00;
2. A conveyance by or to the United States of America, the State of New Jersey, or any instrumentality,
agency or subdivision thereof;
3. A conveyance encumbering realty, or providing for the modification, release or discharge of a debt,
obligation or encumbrance, or the foreclosure of a mortgage or lien, or sheriff and execution sales;
4. A deed which confirms or corrects a deed previously recorded;
5. A sale for delinquent taxes or assessments and the foreclosure of same;
6. Judicial proceedings affecting interests in real estate, and documents filed in connection thereto;
7. A conveyance by a receiver, trustee in bankruptcy or liquidation, or assignee for the benefit of creditors;
8. A deed eligible to be recorded as an “ancient deed” pursuant to N.J.S.A. 46:16-7;
9. A deed or map that memorializes subdivisions of land, or which creates or affects easements or restrictions or other burdens upon title;
10. A conveyance between family members or former spouses;
11. Execution of a lease or license;
12. In specific performance of final judgment;
13. A deed releasing a right of reversion;
14. A deed by a executor or administrator of a decedent to a devisee or heir to effect distribution of the
decedent’s property in accordance with the provisions of the decedent’s will or the intestacy laws of New
Jersey, or the passage of title by intestacy or descent; or
15. A deed to effectuate a boundary line agreement.
(d) A person claiming to qualify for an exemption under (c) above shall document the exemption that applies by providing to the administrative authority applicable State of New Jersey Affidavit of Consideration of Use forms available through the New Jersey Department of Treasury and all supporting documentation.

Source: https://www.state.nj.us/dep/dwq/pdf/njac79a.pdf

You are free to negotiate with the seller as to who pays for what with regard to installing the main house septic system vs. the guest house, but there is no way that the transaction can be executed with the guest house cesspool left in place unless the transaction fits into one of the exemptions above, which it sounds like it does not.

Originally Posted by Retriever

If you are at the contract stage, you should have already retained an attorney. Rather than trusting the opinions of random strangers--with unknown legal credentials--on the internet, wouldn't this be a question to pose to your attorney?

This part of the question is easy to answer. The complicated question is installing two systems on one property. NJDEP and/or the County Board of Health where the property is located will have a lot to say with regard to that, and the buyer should absolutely involve an experienced attorney and engineer in that process.

[Swamp_Yankee]

OP I also PM'ed you with a recommendation for a good engineer in this area. In my experience, attorneys and realtors in NJ see septic issues as an annoyance to be muddled through in the interest of simply closing the deal and moving on. They also know almost nothing about N.J.A.C.7:9A in my experience, whereas a good engineer fully conversant in the regulations and experienced in dealing with the Health Department in your particular county is worth their weight in gold.