Quick answer: A failed system generally must be upgraded within two years of the inspection, or sooner if the Board of Health orders it. Sellers can repair before closing, give a price credit, or set up an escrow. In many towns the buyer can take on the upgrade with Board of Health approval.
Your options as a seller
| Option | How it works | Watch out for |
|---|---|---|
| Repair before closing | You hire the designer and installer, and close with a passing system. | Timing. Design, permits and installation can take weeks to months. |
| Price reduction or credit | Buyer takes on the upgrade after closing. | Lenders and the Board of Health may require an agreement or escrow. |
| Escrow at closing | Funds are held back to pay for the upgrade. | Escrow is often set above the estimate to cover overruns. |
The upgrade process
- Get the full inspection report and note exactly which component failed. A cracked tank or d-box may be a much smaller fix than a failed field.
- Hire a designer (registered professional engineer or registered sanitarian).
- Soil evaluation: deep holes and a perc test by a MassDEP-approved soil evaluator, usually witnessed by the Board of Health. Some towns limit testing to high-groundwater season.
- Board of Health review and permit
- Installation by a locally permitted installer, then final inspection and a Certificate of Compliance.
Paying for it
A failed system at your principal residence may qualify for the Massachusetts septic tax credit, and many towns offer low-interest betterment loans. See tax credit & loans. Ballpark costs are in our cost guide.
Related guides
Frequently asked questions
Can I sell a house with a failed septic system in Massachusetts?
Yes. The inspection must be done and disclosed, but a failed system doesn't block a sale. Buyer and seller negotiate who handles the upgrade, and the Board of Health sets the deadline.
Can I get a second opinion on a failed inspection?
You can hire another MassDEP-approved inspector, but every inspection report goes to the Board of Health. Ask your inspector to explain the failure criteria before deciding.
What does 'conditional pass' mean?
A specific component, like the tank or distribution box, needs repair or replacement. Once fixed, the system passes without replacing the leach field.
Last reviewed 2026-11-09. Regulations and prices change. Confirm details with your local Board of Health and your contractor.