source:
  type: guide
  id: va-m26-7-ch12-t07
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 7 — Geological
    or Soil Instability, Subsidence, and Sinkholes
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 7 — Geological
    or Soil Instability, Subsidence, and Sinkholes.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch12-t07-full
  canonical_id: va-m26-7-ch12-t07-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 7 — Geological
    or Soil Instability, Subsidence, and Sinkholes
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 7 — Geological
      or Soil Instability, Subsidence, and Sinkholes
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 824171a914866a59
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:71efd8bb39bb5596ad194f1b13e6f979cfa1afbf5566e897e26836fc1ab0429e
    paragraph_quote: '7. Geological or Soil Instability, Subsidence, and Sinkholes
      Change Date October 18, 2019 • This chapter has been revised in its entirety.
      a. Soil Conditions The appraiser must report any readily observable soil conditions
      of the site, and other physical features that affect the value of the site.
      The appraiser should also consider any published reports regarding the instability
      of the soil and surface support of the land concerning the subject and nearby
      properties. The appraiser must consider any effect on the estimated market value
      of the property. b. Subsidence Subsidence may be encountered where homes are
      constructed on uncontrolled fill or unsuitable soil, in locations near mining
      activity or extraction of subsurface minerals (to include fracking), or where
      the subsoil or subsurface is unstable and subject to slippage or expansion.
      Signs of subsidence may include cracks in the terrain, sinkholes, foundation
      damage or settlement problems. c. Dangerous Subsidence or Sinkholes The appraiser
      must report any probable or imminent danger of subsidence or sinkholes. Depending
      on the extent of the problem, it could be considered a hazard (see Topic 20
      of this Chapter) which would make the property ineligible. The appraiser must
      notify the lender promptly when a hazardous condition is found. d. Repairs by
      Contractor If a settlement problem that does not have the severity of a hazard
      is apparent, the appraisal must be prepared “subject to repair” by a licensed
      contractor (for example, step-cracks in an exterior wall, or cracked flooring
      with significant vertical displacement). e. Hairline Cracks Minor hairline cracks
      due to expansion or normal settlement that are common in the market area do
      not typically require repair. Continued on next page VA Pamphlet 26-7, Revised
      Chapter 12: Minimum Property Requirements 12-12 7. Geological or Soil Instability,
      Subsidence, and Sinkholes, continued f. New or Proposed Property For new or
      proposed construction properties, in areas that have a history of geological
      or soil instability, the builder must submit either: • a certification that
      to the best of the builder’s knowledge and belief, any geological or soil-related
      hazard has been compensated for in the engineering design of the improvements
      and no portion of the construction will rest on fill, or • evidence from a qualified
      geologist or engineer that the subject site either does not present unusual
      geological soils-related hazards or such hazards have been compensated for in
      the engineering design of the improvements. (Qualified geologists are state
      licensed or are a member of a national or state organization which requires
      responsibility, experience, education and demonstrated ability in the field
      of engineering geology.) VA Pamphlet 26-7, Revised Chapter 12: Minimum Property
      Requirements 12-13'
  judgment: false
