Sewer lateral inspections before you sell in California

Updated November 2026

Which Bay Area and Santa Cruz cities require a sewer lateral certificate before a home sale, what the test involves, what repairs cost, and how time extensions work.

In a growing list of California cities and sanitary districts, a home cannot close escrow until the private sewer lateral passes an inspection. The rule usually comes from a consent decree or a regional water board order meant to stop leaking pipes from overloading treatment plants in wet weather.

Where it applies

• East Bay (EBMUD program). Alameda, Albany, Emeryville, Oakland, Piedmont, and the Stege Sanitary District (El Cerrito, Kensington, Richmond Annex) need an EBMUD Compliance Certificate.
• Berkeley. Berkeley runs its own certificate program with a six-month extension option.
• Oro Loma Sanitary District. San Lorenzo and nearby areas joined in 2026, for escrows opened on or after August 1, 2026.
• Peninsula. South San Francisco, San Bruno, Burlingame, Hillsborough, Millbrae, Pacifica and San Mateo each have their own rule.
• Santa Cruz. The city and the county sanitation district both require an inspection before close of escrow.
• Morgan Hill. Sellers inspect laterals on homes over 15 years old, plus plumbing fixtures on older homes.

How the extension deposits compare

Who pays

The ordinance usually puts the duty on the owner, but buyers and sellers negotiate it. A seller who cannot afford a $15,000 replacement before closing can often credit the buyer and let the buyer finish the work under a time extension.

Step by step

1. Check whether a valid certificate is already on file for the address. If it is, you may be done.
2. Hire a licensed plumber or sewer contractor to video (CCTV) the lateral and, where required, run an air or water pressure test.
3. 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.
4. The city or district issues the compliance certificate, and escrow can close.
5. If you run out of time, ask about a time extension. These usually require a refundable deposit and a firm deadline after closing.

Cities with this requirement