In Padovano v. Vivian, 217 A.D.2d 868 (3rd Dep't 1995), the seller sold buyers a motel upon which seller retained a mortgage. The note and mortgage permitted the buyers to offset the mortgage payments due seller for the costs of repairs to the septic system. Plaintiff foreclosed on the mortgage and defendants counterclaimed for the cost of replacing the septic system and the cost of installing a new swimming pool. The contract provided that "the septic shall be placed in good working order and shall remain so for a period of one (1) year from the date of closing". The contract further provided that the swimming pool on the property would be in good working order. The evidence showed that the Local Department of Health condemned the septic system and it had to be replaced. Plaintiff contended that the warranty of good working order didn't encompass replacement. The court rejected this argument and found the sellers responsible for replacement of the system. The evidence showed that the system was in a state of failure prior to closing and the repairs attempted by sellers failed. The court held that replacement was required to put the system in good working order. The issue of the swimming pool brought a contrary result. There was no warranty for a specific period of time. The pool had certain defects but was used by patrons of the motel after closing. The local Department of Health did not order the pool closed. Thus the Court denied recovery regarding the pool.