If you are looking to sell or purchase real estate with a septic system in the state of Colorado, it is important for you to know the local transfer of title requirements, so you don’t get stuck in a sh--, well let’s just say, less than ideal situation. Many Colorado counties have enacted specific regulations regarding septic system requirements for permitting, including certification before a home can be sold, making understanding title transfer even more complicated.

What is an on-site wastewater treatment system?

An on-site wastewater treatment system (“OWTS” or “Septic System”) treats wastewater on an individual’s property. Septic Systems are installed on properties that cannot be served by a wastewater utility. Many Colorado counties have enacted new regulations governing the use and permitting of Septic Systems, including OWTS transfer-of-title inspections and permitting requirements. These regulations stemmed from the Water Quality Control Commission of the Colorado Department of Public Health and Environment adopting Regulation #43, which established minimum standards for the location, design, construction, installation, and alternation of Septic Systems within Colorado. It is important to adhere to these requirements to avoid Septic System litigation when transferring title.

Is a permit required for a Septic System in Colorado?

Yes, under the Colorado On-Site Wastewater Treatment System Act, all Septic Systems must have permits issued by local boards of health or the commission in Colorado for new installations, expansions, and repairs. There are various permitting requirements to adhere to in each applicable county. Additionally, each county’s regulations can vary, so it is important to confirm the county’s specific process before installing, maintaining, cleaning, or disposing of a Septic System.

Some older OWTS in rural areas were “grandfathered in,” but more counties are requiring updates to systems before the property can be sold, particularly in instances where homes have additions to support more bedrooms and older, smaller tanks may be insufficient to meet the current household demands.

When is a Septic System inspection required to transfer property in Colorado?

A county or local board of health may choose to, but does not have to, require a property owner of a residence or other building/facility served by a Septic System to have an inspection of that system done to demonstrate that the system is functioning according to design prior to the sale or transfer of title of the property. There are currently twenty-two (22) counties in Colorado that have a Septic System transfer-of-title inspection requirements. Each time a property in one of these counties transfers title, a septic system inspection is required to be performed. These counties are:

• Adams County

• Arapahoe County

• Archuleta County

• Boulder County

• Broomfield County

• Clear Creek County

• Douglas County

• El Paso County

• Elbert County

• Gilpin County

• Gunnison County

• Hinsdale County

• Jefferson County

• La Plata County

• Lake County

• Larimer County

• Mineral County

• Park County

• Pitkin County

• Pueblo County

• San Juan County

• Summit County

I am selling my home – do I need a permit or an updated inspection for my Septic System?

Most likely, yes. More counties are starting to require by ordinance that a Septic System be up to date on permits and have a clean Septic System inspection before a sale or transfer of title is made. Also, the Colorado Real Estate Commission’s approved contract for buying and selling real estate in the state requires sellers to disclose issue with the property. With the geography of Colorado, more disputes are arising over the disclosure of Septic System permitting and functioning in rural areas. In order to save time, energy, and money in the future, it is best to ensure OWTS permitting is up to date and to have a Septic System inspection done before selling property in Colorado.

What happens when the seller of real estate fails to disclose a defective Septic System in Colorado?

When a seller fails to disclose a defective Septic System, there are a handful of legal remedies, such as mediation, arbitration, or litigation, to compensate the buyer for Septic System expenses, the misrepresentation, and consequent legal fees. Sellers should be aware of county Septic System regulations to ensure that they are not digging themselves into a dirty hole when transferring title. Likewise, buyers should understand the Septic System regulations applicable to their purchase in order to determine what remedies are available to them.

If you are a seller or a buyer of real estate with a Septic System in Colorado, and you need help navigating the murky issues surrounding the title transfer, GLO has extensive experience helping clients across Colorado keep their hands clean when it comes to Septic System issues. Fill out an interest form today to see if GLO can help you.

GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation, and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific fee arrangements and signed engagement letters. GLO does not guarantee any results.