Avoid fraud by disclosing everything to the lender.

I wouldn't dream of it, Cindy Stys! My first thought would be loan fraud and I really don't look good in orange!

AOS = Agreement of Sale? What's the specific reason that you don't want the lender to see the septic report? That would not fly here (AZ) -- it has to be legally transferred per state law.

That won't fly in AZ. NO NO NO. It is a requirement and they must use the proper form.

Transparency is important, not something you should hide if the lender is interested in this report.

Cindy Stys As Roy Kelley said, "Avoid fraud by disclosing everything to the lender".

I would think it would need to be disclosed as the septic is an integral part of the property, which is the bank's collateral. If the septic is not functional, the collateral is rendered defective and the value goes down (at least by the cost of a new septic system, or what it might cost to repair it and that might be up to $35K or more), which might put the loan in technical default if the proper loan to value ratios are not maintained. 

What is AOS?

Most buyers here verify working septic systems. Any previous septic repairs are usually on file at the health dept. Not all buyers get septic inspections though.

This type of inspetion is right in our contracts

I assume you drop off this information so lender won't call or ask for any repairs. Conventional this might work but buyer might be calling his attorney in a year when the tank leaks. Make sure you get every thing signed off

I don't know what an 'AOS' is; however, I am a big fan of over disclosure.

I believe it should be part of the contract. What's an AOS?

Disclose, Disclose, DISCLOSE even to the lender through the contract and addenda. 

Is someone fearful it won't pass ???

Each one is different & someone 'should' read the listing sheet in which it states that anyway. It's not a good idea to do this.

Ages ago we didn't give them the riders, now the appraiser asks for the riders if he doesn't get them. I think it's a different world out there.

We have sewer out here.  Sorry, can't help there.

An attorney told me that if you receive written direction from the lender to limit the addendums they are given, you are okay as this is coming from the authorized representative of the bank who is producing the funds for the purchase. However, make sure this direction is in writing and made a permanent part of your paperwork on the transaction.

Is it something the lender wants/needs to see?  Then is it something that is being kept from the lender intentionally?  Then is it fraud?  A separate addendum that doesn't go to the lender sounds sketchy to me.  I don't like it, wouldn't do it. -Kasey

all of our lenders in MA want to see a copy of the Title 5 inspection and certification.... 

Call to your lender each lender is different.....

Living in the City, we don't have septic inspections.

I think he did:

This is not required in my state.

Cindy Stys - now in MA, this is required by the lender so no matter what...

Someone is playing games and I don't play along.

The scale of justice is leaning toward fraud right now. My thought is that this is not recommended!

No. I would not mislead the lender.

I don't know what the requirements are where you are, but I don't even know what an AOS is. Inspections are at the discretion of a buyer in my market and don't go on any addendum. We never send inspection reports to lenders.

Never had an issue,but then again, have always disclosed!