Understanding Septic Systems

General Information:

Iowa Code 567-69.2(455B) Time of Transfer Inspections

In Iowa, there is a specific law often referred to as the “Time of Transfer” (ToT) septic inspection requirement for properties with septic systems. Here’s what that entails:


Beginning July 1, 2009, prior to any transfer of ownership of a building where a person resides, congregates, or is employed that is served by a private sewage disposal system, the sewage disposal system serving the building shall be inspected.  Inspections are good for two years of the date of the inspection.


If a private sewage disposal system is failing to ensure effective wastewater treatment or is otherwise improperly functioning, the system shall be renovated to meet current State of Iowa construction standards located in Chapter 69 of the Iowa Code. 


If a private sewage system is properly treating wastewater and not creating an unsanitary condition in the environment at the time of inspection, the system is not required to meet current construction standards.


If a property is being demolished or if weather will not allow for an inspection or new installation to take place, a legally binding agreement between the property's buyer and the County Board of Health will be required. The buyer will be responsible for completing the work outlined in the agreement by the designated completion date.  


Property transfer documents will not be recorded by the County Recorder's Office without the proper documentation attached. 


🧾 Basic Requirements

  • Before any sale or deed transfer of a home or building served by a private septic (private sewage disposal) system, the septic system must be inspected. This applies to virtually all ownership transfers unless an exemption applies.

Common Exemptionsare:

  • Transfers between joint tenants or tenants in common
  • Transfers to close family members — typically spouses, parents, children, or lineal relatives
  • Property transferred through estate administration, such as to heirs or beneficiaries after a death
  • Foreclosures

🔍 Inspection Timing

  • The inspection must be completed before the property is transferred or the deed is recorded. The required inspection results and documentation must be submitted and attached as part of the transfer process.

  • The inspection report, once submitted by a certified inspector, is shared with the county and the Iowa Department of Natural Resources (DNR).

Who Can Inspect

  • Inspections must be conducted by a certified Time of Transfer inspector — a professional certified by the Iowa DNR (see list of qualified inspectors).

Validity of Inspection

  • In many counties , a Time of Transfer septic inspection is considered valid for two years from the date of the inspection for future transfers if the system did not fail and no changes occurred.

Exemptions and Agreements

Certain transfers may be exempt (for example, some family transfers or tax deed sales — check with county health officials for specific cases).

Also, when conditions make inspection difficult (weather, pending demolition, etc.), binding agreements may be used to allow inspection or system installation after the transfer.


📥 Required Documentation

At closing you’ll generally need:

  • The Time of Transfer inspection report, which needs to be filed with the appropriate County's Health Department
  • A Groundwater Hazard Statement (includes septic info and links to inspection),
  • Any binding agreements if applicable


Listing Agent Perspective

  • Preparing the Home for Market:
    • Gather and organize documentation:
      • Maintenance records, service contracts, and receipts for repairs.
      • Prepare to have the TOT (Time of transfer inspection) Report performed
      • Advise the seller that there may be damages to the yard
    • Address potential buyer concerns by providing clear, upfront information about the system's condition.
  • Seller Communication:
    • Inform sellers of their responsibility to disclose all known material defects in the septic system.
    • Encourage sellers to ensure the system is in good working order before listing.
  • Proactive Steps:
    • Verify if pumping is required before inspections in your market and negotiate this during contract terms.
  • Costs:
    • It is customary for the sellers to pay for any costs associated with pumping the septic tank.  In the event that repairs are required, it is also customary for the seller to pay for any costs as a clean/ clear TOT inspection is required to transfer the deed to the property, however it is an item of negotiation between the parties.

Recap:

  • When handling transactions involving septic systems, attention to detail is key.
  • Contracts should clearly outline responsibilities for pumping, inspections, and compliance with local regulations.
  • Before closing, ensure that all inspections, maintenance records, and disclosures are complete.
  • By asking the right questions, gathering documentation, and maintaining clear communication, agents can safeguard their clients from unexpected surprises and potential liabilities.
  • Successfully managing septic system properties not only protects clients but also enhances the agent's reputation for professionalism and reliability.