Bank (Seller) requesting dye test for vacant lot with sewer???

3 Replies

I'm under contract for an REO residential lot that used to have a SFH on it. Apparently, the house was hit by a car and compromised its integrity so it was demolished. Right now I'm just looking To flip the land.

The property is 14,000 sq/ft with sewer & utilities at the street surrounded by very similar lots & houses in the neighborhood. No big surprises, I don't think, being that there was a house there not too long ago.

I was just contacted by the REO closing coordinator and he said that "a dye test is required for this property and it is the buyer's responsibility". There are no structures on this lot and even when there was it was serviced by public sewer at the street. Anyone have any suggestions on how to proceed?

Can you see any sewer clean outs close to where the house was located?  Dye test can be done by a plumbing company sewer camera equipment.  Biodegradable dye is mixed with water and poured into the clean out and then filmed at the closest down hill man hole.  This process ensures the sewer on the property, if any, is connected to city

@Mitch VanDeveer

Thanks, Mitch. I'm going to check out the property right now to see if there's a clean out.

I just received another email from the closing agent saying that I should check with the Township to see if a dye test is necessary for resale (I don't think it is).

They also just now told me that a video sewer inspection is required for tax certification which, again, I'm unsure is necessary or even possible.

@Mark Beekman ,

Have you asked if any available records for the residence formerly located on the lot would suffice? ...building permits, connection permits, inspection records, etc.? The former residence likely had the documentation. Also, ask about documentation of the former house, when it was built, the builder, etc. and records regarding its demolition. If they're looking for proof, that should do the job. The question is whether they'll accept it.