Septic regulations won’t hurt sales, realtors say

Photo courtesy, NatureChange.org

By Ross Boissoneau

Sun contributor

The county’s decision to require septic inspections when a home is sold could be a boon to the environment. While opposed by the Michigan Association of Realtors, local agents seem to be in favor of it and doubt that it will negatively impact sales.

“I’ve been a fan of that (regulation) for years,” said John Martin of the Martin Company. “It’s a great opportunity to upgrade old or failing systems. I think it’s the right thing to do.”

“I don’t think it will have a lot of (negative) impact,” added Rob Serbin. “I don’t think it’s a bad thing at all.”

While famed for its numerous waterways, Michigan – the Great Lakes State, the Water Wonderland – is the only state in the country without a statewide sanitary code. That means it is left up to counties or townships to set standards. Many don’t have any such regulations.

In August, the Leelanau County Board of Commissioners voted 5-2 to mandate a “time of transfer septic inspection ordinance.” That means anytime a home is sold or otherwise transferred to a new owner anywhere in the county, the Benzie-Leelanau District Health Department is mandated to conduct an inspection.

“It makes sense,” said Serbin, noting that many systems put in 40 or 50 years ago were inadequate to start with, and as the years have passed even those that were adequate may no longer be. “At the point of sale, if the system is failing, you’d be crazy not to do something about it.”

While such a mandate may cost the parties – most likely the seller – Realtors believe the profits from a sale will help to mitigate the financial pain, making it the perfect time. “It may well make our job as realtors easier,” said Ranae Ihme of Leelanau Vacation Realty.

“The money is there when it’s sold to upgrade,” added Martin. “People have to bite the bullet.”

To be clear, the Michigan Association of Realtors is not opposed to a statewide septic code in general. Brad Ward, MAR Vice President for Public Policy and Legal Affairs, says the organization’s position is in favor of a regular schedule of inspections, rather than just when a home is sold. “We favor … a regular inspection schedule for all owners,” Ward said in an email.

“Point of sale is often expedient for local governments to administer; however, it is not reliable in addressing the true issue of pollution,” he continued. As an example, he points to a potential situation in which a home is sold to three different owners over a 15-year period, resulting in three inspections, while the home next door remains owned by one owner throughout that time and possibly more, with no inspections whatsoever.

Ward also suggested that mandated point of sale inspections could result in thwarting a sale when the buyer and seller are not able to negotiate repairs and replacement at the closing table. “We support a statewide code that creates uniformity, certainty, protects our water, property rights, and increases the availability of alternative (engineered) systems.”

Ihme understands the apprehension and shares it to a degree. She doesn’t particularly like putting a potential roadblock on a sale, but said, “It had to happen at some point.”

Skip Pruss, an environmental expert and consultant from Northport, also agreed that inspections contingent upon sales is not ideal, but he’s pleased to see something – anything – being done now. “I look at it as something long overdue,” he says, noting that Michigan is at the heart of the largest freshwater system in the world, with 20% of the planet’s fresh surface water and 95% of the country’s.

The former director of the Michigan Department of Energy, Labor and Economic Growth, Pruss served as Governor Granholm’s Special Advisor for Renewable Energy and the Environment, chaired the Great Lakes Offshore Wind Council, and served on the U.S. Department of Energy’s energy efficiency and renewable energy advisory committee. He is hopeful a statewide regulation could become a reality when Democrats take over both the state House and Senate. Statewide proposals to address septic regulations often met opposition from Republicans, as did Leelanau’s regulation, which was passed largely along party lines. Republican Rick Robbins voted in favor of the proposal along with the four Democrats, with Republicans Melinda Lautner and Debra Rushton voting against it.

The most recent statewide effort came in 2018. Representative Abdullah Hammoud, D-Dearborn, and then-Rep. James Lower, R-Cedar Lake, introduced House Bills 5752 and 5753. They made it as far as the House Committee on Local Government before stalling. Bridge Michigan quoted Hammoud as saying the negotiations fell apart due to differences of opinion on what would trigger an inspection.

Michigan has between 1.3 and 1.4 million septic systems in use. That’s approximately 35% of the state’s residences. That percentage is likely higher in rural areas, such as Leelanau County. While communities such as Leland, Suttons Bay, Northport and some parts of Elmwood Township boast municipal septic systems, the vast majority of households in the county – as many as 15,000 – have private septic systems. Now, no matter where in the county a home is sold, an inspection must take place.

Given the county’s reputation and desirability, many realtors believe that despite the new regulation and the increasing interest rates, the only thing standing in the way of a continued strong real estate market is the lack of inventory. That’s in large part because so many sales are for second or vacation homes and are often cash. “Will it impact sales? No,” said Martin. “You’ve got to look at who’s buying.”

This story was sponsored by Painted Bird.