Environmental
In South Dakota, a property with an onsite wastewater treatment system (septic system) that does not meet current code requirements must be:
ASold as-is with no disclosure requirement
BDisclosed to buyers and may require repairs or replacement as a condition of sale or financing✓ Correct
CApproved by the Real Estate Commission before listing
DExempted from disclosure if the system is functioning
Explanation
Non-compliant septic systems are a material defect that must be disclosed to buyers. Lenders and FHA/VA loans may require that the system meet current standards before closing. The condition of the septic system can significantly affect the property's value and the buyer's ongoing costs.
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