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

Daniel.olson@dnr.iowa.gov

www.onsiteiowa.com