Selling a house in Morgan Hill, CA: what the city requires
Santa Clara County, California · Last checked November 2026
Morgan Hill sellers must complete a sewer lateral inspection on homes over 15 years old and a plumbing fixture inspection on homes built before 1994.
What Morgan Hill requires
Private Sewer Lateral inspection (Ordinance 2322)
- Who does it
- A Qualified Contractor from the city list runs CCTV from the cleanout to the main.
- Cost
- Contractor inspection plus repairs. A city PSL grant program exists.
- Deadline
- Before the sale. The buyer needs the certificate to start water service.
- If not done by closing
- Seller and buyer can sign a notarized Transfer of Responsibility. The buyer then has 180 days to repair.
- Exempt
- Properties 15 years old or newer. In 2026, homes built in 2011 or later are exempt.
Plumbing fixture retrofit inspection
- Who does it
- Qualified Contractor.
- Deadline
- Before the sale.
- Exempt
- Homes completed in 1994 or later.
Who to call
Morgan Hill Environmental Services
(669) 253-4332
Official page
Housing in Morgan Hill
- Median year homes were built
- 1990
- Median home value
- $1,210,200
- Owner-occupied homes
- 10,624 of 14,865 (71%)
- Total housing units
- 15,543
The typical home here dates from 1990, so many laterals are newer plastic pipe. A test is still required, and root intrusion or a bad joint can still fail it.
Source: U.S. Census Bureau, American Community Survey 2020-2024 5-year estimates for Morgan Hill city, California.
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How the sewer lateral process works
A sewer lateral is the private pipe that carries wastewater from the house to the public sewer main. Many California cities and sanitary districts make sellers prove it does not leak before title can transfer.
- Check whether a valid certificate is already on file for the address. If it is, you may be done.
- Hire a licensed plumber or sewer contractor to video (CCTV) the lateral and, where required, run an air or water pressure test.
- If the lateral fails, the contractor pulls a permit and repairs or replaces it. Many agencies send their own inspector to witness the final test.
- The city or district issues the compliance certificate, and escrow can close.
- If you run out of time, ask about a time extension. These usually require a refundable deposit and a firm deadline after closing.
| Item | Typical range |
|---|---|
| Video inspection or pressure test | $250 to $750 |
| Spot repair | $1,500 to $10,000 |
| Full lateral replacement | $8,000 to $25,000 or more |
Read the full sewer lateral guide
Other towns with the same requirement: Sewer lateral video or dye test
More Morgan Hill home rules: Tree removal permits · RV & trailer parking
If the house fails
You can repair before closing, use an escrow or extension where the city allows it, let the buyer assume the work for a credit, or sell as-is. Compare the options.
Frequently asked questions
What does Morgan Hill require before I sell my house?
Morgan Hill sellers must complete a sewer lateral inspection on homes over 15 years old and a plumbing fixture inspection on homes built before 1994.
How much does the private sewer lateral inspection cost in Morgan Hill?
Contractor inspection plus repairs. A city PSL grant program exists. Typical related costs: video inspection or pressure test $250 to $750; spot repair $1,500 to $10,000; full lateral replacement $8,000 to $25,000 or more.
What if the repairs are not finished before closing?
Seller and buyer can sign a notarized Transfer of Responsibility. The buyer then has 180 days to repair.
Who pays, the buyer or the seller?
The ordinance usually makes the seller responsible for ordering it, but who pays for repairs is negotiable in the purchase agreement.
How old are the homes in Morgan Hill?
The median home in Morgan Hill was built in 1990, and the median home value is $1,210,200, according to the Census Bureau's 2020-2024 American Community Survey.
Nearby: San Francisco Bay Area
- Alameda Required at sale
- Albany Required at sale
- Belmont No point-of-sale rule
- Belvedere Required at sale
- Berkeley Required at sale
- Burlingame Required at sale
- Castro Valley Required in some cases
- Corte Madera Required at sale
- Crockett Required at sale
- Daly City Required at sale
- Mountain View No point-of-sale rule
- Palo Alto No point-of-sale rule
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Sources
- City of Morgan Hill, Utility Inspections at Property Sale
- U.S. Census Bureau, American Community Survey 2020-2024 5-year estimates (tables B25035, B25077, B25003, B25001)
Last checked November 2026. Rules and fees change by ordinance and resolution. Confirm with the municipality before you list. See something out of date? Report a change.