Profile picture for kilbrew

What is a closed sale between family?

I am purchasing a home from my father. The bank requires well and septic testing. I was told (by a friend that had a similar situation) that there is "closed sale" when the dealings are between family members and then well and septic testing isn't required. Is this correct or where would I find more info on this?
  • July 17 2012 - New York
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (6)

Profile picture for kilbrew
Ofe, It is a drilled well. I did get it to pass the second time around after shocking the system. I was really doubtful that it was going to because we are only there a couple days a week and do not use that much water. To my surprise it did pass. Thanks everyone for the responses.
  • July 25 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user293438
My parents would like buy a condo in WA. They are a foreign citizens. They are not going to be here in moment of purchase. It is a cash purchase.What kind of documents should I have from them?
  • July 24 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Ofe Polack
I suggest that you talk to a company that drills wells and ask for a recommendation.  You do not say if it is a dug well or a drill well, but I am assuming that it is a drill well.
  • July 18 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for kilbrew
I have had the well tested, but it failed. Now we are down to disinfecting it. I am required to have it pass or I have to put money in escrow or have it repaired if I cannot get it to pass. The main reason I was asking is to get the loan process to move along so I can occupy the home. In my opinion the well will not pass due to the fact that the house has sat unoccupied for 2.5 years. Thanks for the replies. 
  • July 18 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Ofe Polack
Have you discussed this with your lender? Personally, even if I were buying from my parents I would have the well and septic checked.
  • July 17 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for nwhome.us
That's a good question for the attorney who is helping you close the transaction.

In Washington State a transaction between family members is not an Arm's Length Transaction (ALT).  An ALT is required in order for the price to be used as a comparable property by appraisers and has nothing to do with the county requirements for septic testing.

If your lender is requiring it, it has to do with either the county requirements or their own policies.  Just get it done.
  • July 17 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.