Conveyancers ‘failing buyers on sewage tank rules’ - claim

Lawyers are warning of a growing number of incidents of septic tank conveyancing negligence, which could prove costly for homebuyers.

House buyers are being warned of what is described as a little-known property rule concerning homes with a septic tank that may lead to a £100,000 fine if not complied with.

In January 2015, new Government regulations came in regarding how septic tank waste is disposed of, their state of repair and the suitability of their size.

The new ruling was designed to minimise the environmental impact of sewage on UK rivers and other waterways.

Applicable homeowners were given until January 2020 to upgrade their tanks to ensure compliance with the regulation. 

However, professional negligence law firm Been Let Down believes that the vast majority of tanks haven’t yet been updated, because owners either aren’t aware they are required to do so or have put it off due to the cost, which can be as much as £20,000.

Devon, North Yorkshire, Cornwall, Somerset, Shropshire and Cumbria are all understood to be potential hotspots for homes with septic tanks in England, although experts believe there are non-compliant properties all over the UK.

Solicitors who are managing the sale of a property are expected to notify the buyer that the property has a septic tank and tell them about the new regulations. It’s then up to the buyer to check if the septic tank meets regulations and either replace or upgrade it, or ensure the owner is aware this needs to happen, as a condition of sale.

However, many conveyancers aren’t aware of the regulations themselves, Been Let Down claims, leaving buyers and sellers at risk of unexpected upgrade costs, a reduction in their property value, or even a potential £100,000 fine from the Environment Agency.

In some cases, where a septic tank does not comply with new regulations, homeowners could even face up to three months in prison when convicted in a magistrates’ court.

A solicitor failing to notify the buyer is considered an act of conveyancing negligence, and the owner affected by this mistake may wish to claim for compensation, Been Let Down suggests.

Tony Hill, head of professional negligence at Been Let Down, said: “This is a growing issue, and something that we believe more homeowners need to be made aware of.

“In this instance, negligence occurs when the conveyancer doesn’t tell the buyer about the new regulations. Letting a buyer know about the regulations could be as simple as a standardised sentence in terms and conditions or a check list, so the issue really is easily avoidable.

“We’re finding that a lot of solicitors don’t know about the law-change though, and some are therefore being unintentionally negligent as a consequence.

“For those affected, typically a claim must be made within six years of purchase of the property with a defective tank.

“In many cases we deal with, our client hasn’t actually paid any money yet or had the upgrade work done. 

“It is most common for clients to discover that their tank doesn’t meet the regulation when they come to sell, and then they must make the claim to be able to afford to have the work done, which can often cost in excess of £10,000, so their property value is not impacted.”