Septic Systems in NC: What Real Estate Agents Need to Know and Disclose

In North Carolina, many properties—especially in rural and suburban areas—are served by septic systems instead of municipal sewer. For real estate agents, that means understanding how these systems work, knowing what to look for in permits, and following your duty to disclose material facts that could affect a buyer’s decision.

Septic issues are one of the most commonly misunderstood and mishandled parts of a transaction—and they can lead to complaints, delays, or even post-closing legal trouble. Here's what you need to know to keep your clients informed and your license protected.

What Is a Septic System?

A septic system is an underground wastewater treatment system that includes a septic tank and a drain field (also called a leach field). Waste from the home flows into the tank, where solids settle, and liquids are dispersed into the soil.

North Carolina septic systems are regulated by local county environmental health departments and require a permit for installation and repair.

What Real Estate Agents Must Do (NCREC Guidelines)

According to the NC Real Estate Commission, brokers are expected to:

Determine the existence of a septic system

If a property is not connected to public sewer, assume a septic system is in place—even if the seller isn’t sure.

Verify the septic permit

Locate and review the septic system permit, which specifies:

• The approved number of bedrooms (not bathrooms or square footage)

• The location of the tank and the drain field

• Any restrictions (e.g., no building over the drain field)

Why this matters: The septic permit legally determines the home's approved occupancy. A home advertised as a 4-bedroom but permitted for 3 poses a material misrepresentation.

Disclose known or reasonably discoverable issues

You must disclose any:

• Known septic failures

• Unpermitted bedroom additions

• Unpermitted repairs or alterations to the system

• Evidence of overuse or malfunction

Common Mistakes to Avoid

❌ Advertising a home by the number of physical bedrooms when it exceeds the permitted number
❌ Assuming sellers have kept septic records or had it pumped regularly
❌ Failing to explain the importance of permit limits to buyers
❌ Not advising buyers to conduct a septic inspection as part of due diligence

Best Practices for NC Brokers

• Ask the right questions early: “Do you have a copy of the septic permit?” “How many bedrooms is the system permitted for?”

• Pull the permit from the county if the seller doesn’t have it (most are public records)

• Recommend a septic inspection—especially for older systems

• Include septic details in MLS only after confirming with the permit or records

• Explain the difference between bedrooms on paper vs. bedrooms in the permit—it matters.

Example: Why This Matters

Let’s say you list a home with 4 bedrooms and 3 baths. It has a septic permit for only 3 bedrooms. That’s a material fact. If a buyer with a large family moves in and experiences septic failure due to overuse, you—and your firm—could be held responsible if that discrepancy wasn’t disclosed.

Know the System. Know the Rules.

At Providence Real Estate Education, we help brokers stay sharp on the details that make a big difference. From septic systems to material fact disclosures, our CE courses are built around real-world issues and NCREC expectations—so you stay compliant, confident, and clear with your clients.

Need to sharpen your knowledge around systems, permits, and property disclosures?
Join us for our upcoming CE classes. Professional education, powered by practical expertise.