wrote:
1) It is on city water, but not sewer....hmmm??

That's good. You really don't want a domestic water well and
a septic system together on such a small lot. In fact, on a
0.5 acre lot it may be illegal to install a septic system at
all. So your only options are the easement on the neighbor's
property, or hook up (possibly at considerable expense) to the
city sewer.


2) The neighbors did a survey in 2005 (we noticed they were renovating
when we checked out our house) so they should be aware of it.

Not necessarily.


3) The sewer lines are 2 blocks away, and it is not possible to tap in.

Sure it's possible. But not practical.


4) There is accurate recording of the easement, and it is a true
easement, whatever that means, going to find out tommorow.

For you, I would say it is irrelevant. This is *not* a smart
situation for a first-time home owner. I bet you don't know
how many gallons the septic tank holds. And you don't need
to consult a plumber, you need to consult a *septic company*.
You also need to find out what company installed the tank and
field, and get design records from them, so you can judge how
long the tank and field are likely to continue to function.
Hire a *different* septic company to do a thorough evaluation.

5) The realtor that is selling the house contaced our realtor today and
told her everything that she already found out from the water
department and records, he even told her that "whatever it takes to
sell this house" (strange I know) it has been on the market for 1 year
Feb. 28th...

Ah. Does the listing agent's contract with the sellers end
on the 28th? "Whatever it takes to sell this house" is not
strange at all; the agent makes zero money unless the house
sells during the contract.

The house has been on the market for a year. Did you just
start looking? Have you considered waiting to see what new
properties come on the market, that you will have a chance
at before they sell? Good buys usually sell fast.

Una