Handbook 4000.1, 9/15/2015, page 488

If the Property has a septic system, the Appraiser must examine it for any signs of failure or surface evidence of malfunction. If there are deficiencies, the Appraiser must require repair or further inspection.


Appraisal Report and Data Delivery Guide, Page 14

[The appraiser must] visually inspect the septic system and its surrounding area.

1.If there are obvious or readily observable signs of system failure, “require inspection” to ensure that the system is in proper working order.

2.If the property is served by a well and/or septic system, the appraiser must indicate whether a public water or sewage disposal system is available to the site.

3.If available, connection must be made to a public or community water/sewage disposal system if connection costs are reasonable. The mortgagee will determine whether connection is feasible.


Atlanta Valuation Training 2015, Slide 64

The Mortgagee is required to ensure the well and septic meet HUD and state and local jurisdiction requirements.



At least one lender has required that the appraiser note the distance between the septic tank, drain fields, and property line.  This is not required by FHA and should be resisted.


Septic Tank OK

The area around the septic was observed.  No adverse conditions were obvious.  (Handbook 4000.1, 9/15/2015, page 488)


Modified:  8/21/2018