My question involves real estate located in the State of:Michigan
My husband and I want to purchase several lots from a family member. The lots are wooded and vacant. We had a survey done on the lots and also went to the courthouse in the county to research the property.
The neighbor to the south had a home on his property that had an unfortunate event and he had to totally rebuild his home about 3 or 4 years ago. The previous home,that was destroyed, had a septic system that was installed in 1990's. The home is used as a summer home with generally only weekend usage. When the home was rebuilt the County gave the owner a Write Off on the septic system and allowed him to use the septic system of the prior home. However, when we pulled the write off information for the septic we found that the existing septic field is encroaching on the property we we hope to buy. The write off states that there is no easement for the encroaching septic system and if the owner of the property (which is the property we want to purchase) objects to the septic on their property then the homeowner needs to get a new permit and put in a septic that conforms to current laws. The property owner who we want to buy the property from was never notified of the encroaching septic and objects to the septic encroachment. The property owner of the lots we want to buy is out of state and has a very ill family member so is unwilling to put a lot of effort into this.
We have an attorney but have not discussed this issue yet.
The homeowner is furious we are buying the property and will be putting up a fence our side of the property line. He says he is going to sue the current owner for access to his septic.
The homeowner purchased his property in 2006 so he has not owned the property for 15 years. The septic was put in by the prior owner. The homeowner had a survey done when he rebuilt the house and knows he is encroaching.
Advice?
Is there any state agency that I can report this county to for issuing a write off for a nonconforming septic on a new home?

