Water and Real Estate Transactions

When you buy a piece of property with a well on it, it is essential to have an independent certified laboratory test the water before the sale is final. See our article “Healthy Water – the Lifeblood of Real Estate.” (This is an excellent article in PDF format, please give it time to download)

Just like a new roof is attractive to a buyer, a properly functioning water system that provides safe drinking water is a comfort that home buyers are willing to pay for. In rural areas, drinking water often comes from private wells, and the quality of that groundwater is directly related to the quality of family life – and even property values.

The buyer’s lending institution will likely require testing and inspection to avoid making a loan on a property with a faulty system. In addition, each state has its own testing requirements to ensure public health. Since many contaminants are odorless, tasteless, and colorless, homeowners should consider testing for additional things like arsenic, lead, copper, and volatile organic compounds. Neilson Research Corporation offers a "Top 30" testing package which includes these contaminants as well as other trace metals, nutrients, and physical parameters that can affect the health of your drinking water.

Regulations concerning the testing of domestic wells during real estate transactions are covered under code OAR-333-061 of the Oregon Administrative Rules filed July 14, 2006. The code states as follows:

OAR 333-061-0325, Domestic Well Tests

In any transaction for the sale or exchange of real estate that includes a well that supplies ground water for domestic purposes, the seller of the real estate shall, upon accepting an offer to purchase that real estate, have the well water tested for nitrates and Total Coliform bacteria. If the well is in a designated area of groundwater concern the Health Division may require additional testing.
The seller, or seller’s designee, shall submit the results of the required tests to the Division.
If the seller, or seller’s designee, fails to comply with sections (1) and (2) of this rule, this does not invalidate any of the documents needed to complete the sale of the real estate.
The seller, or seller’s designee, is responsible for making sure that the Division's Water Systems Data Sheet is completed and submitted to the Division with copies of the nitrate and Total Coliform bacteria lab slips.
The Water Resources Department well identification number and a description of the property shall be entered on the water system data sheet for the seller to be considered in compliance with ORS 448.271. The description shall include township, range, section, street address, city, state and zip code.
The lab tests required by ORS 448.271 cannot be waived even if the buyer agrees not to have the well tested.
The lab tests for nitrates and Coliform bacteria are considered valid for one year if they are associated with the sale of the property.
If the well is not on the property being sold, but the real property includes an interest to a well on adjacent property, including an easement, that interest would be considered part of the real property. Therefore the test would be required.
ORS 448.271 only applies to wells that have been made operational to supply groundwater for domestic purposes. Capped domestic wells on unimproved lots are not required to be tested.

OAR 333-061-0330, Certified Laboratories

Only laboratories certified by the Division in accordance with OAR-333-061-0036 shall be used to conduct the water test required by these rules.
Water tests requires by these rules shall be conducted to the standards prescribed in OAR 333-063-0075

OAR 333-061-0335, Sample Collection

Only persons who have knowledge of the appropriate procedures for the collection and handling of the water samples for nitrates and Total Coliform bacteria and who have experience in this area shall collect the samples. These persons include Registered Sanitarians, certified water system operators, well drillers, pump installers, and lab technicians. Specific instructions for the collection, preservation, handling and transport of the samples may be obtained from certified laboratories, county health departments or the Oregon Health Division must be strictly adhered to.
The samples must be drawn from the source prior to any form of water treatment. Samples may be collected after treatment injection points where water treatment has been bypassed or temporarily disabled.
In the event that the well has been shock chlorinated, no follow-up samples shall be taken until five days have elapsed.

Please Note: Neilson Research Corporation recommends that no follow-up samples should be taken until all traces of chlorine are gone. Then return the water system back to normal usage and wait 5 to 7 days to collect the sample.

The entire Oregon Administrative Rules can be viewed at http://arcweb.sos.state.or.us/banners/rules.htm